# Corporate Valuation Model Assignment | Homework For You

11. More on the corporate valuation model Smith and T Co. is expected to generate a free cash flow (FCF) of \$6,090.00 million this year (FCF, – \$6,090.00 million), and the FCF is expected to grow at a rate of 20,20% over the following two years (FCF, and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF.). Assume the firm has no nonoperating assets. If Smith and T Co.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Smith and T Co.? (Note: Round all intermediate calculations to two decimal places.) \$19,126.52 million \$200,545.14 million \$167,120.95 million \$202,364.53 million

Smith and T Co.’s debt has a market value of \$125,341 million, and Smith and T Co. has no preferred stock. If Smith and T Co. has 450 million shares of common stock outstanding, what is Smith and T Co.’s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) \$278.54 \$92.84 \$102.13 \$91.84. Get Finance homework help today