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Widget Corp. is expected to generate a free cash flow (FCF) of $410.00 million this year (FCF1 $410.00 million) and the FCF is expected to
Widget Corp. is expected to generate a free cash flow (FCF) of $410.00 million this year (FCF1 $410.00 million) and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF2 and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF4). If Widget Corp.'s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Widget Corp.? O $1,300.85 million O $15,414.90 million O $13,051.23 millior $15,661.48 million Widget Corp.'s debt has a market value of $9,788 million, and Widget Corp. has no preferred stock. If Widget Corp. has 225 million shares of common stock outstanding, what is Widget Corp.'s estimated intrinsic value per share of common stock? O $13.50 O $15.95 O $43.50 O $14.50
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