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Widget Corp. is expected to generate a free cash flow (FCF) of $7,125.00 million this year (FCF = $7,125.00 million), and the FCF is expected
Widget Corp. is expected to generate a free cash flow (FCF) of $7,125.00 million this year (FCF = $7,125.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Widget Corp.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Widget Corp.? (Note: Round all intermediate calculations to two decimal places.) $21,297.53 million $160,159.03 million $141,719.77 million $118,099.81 million Please explain how to do this with a financial calculator, not excel
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