More on the corporate valuation model Globex Corp. is expected to generate a free cash flow (FCF) of $2,020.00 million this year (FCF₁ = $2,020.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Globex Corp.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Globex Corp.? (Note: Round all intermediate calculations to two decimal places.) $6,344.09 million $67,122.55 million $66,519.07 million $55,432.56 million Globex Corp.’s debt has a market value of $41,574 million, and Globex Corp. has no preferred stock. If Globex Corp. has 300 million shares of common stock outstanding, what is Globex Corp.’s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $45.20 $138.58 $46.20 $50.81
More on the corporate valuation model Globex Corp. is expected to generate a free cash flow (FCF) of $2,020.00 million this year (FCF₁ = $2,020.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Globex Corp.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Globex Corp.? (Note: Round all intermediate calculations to two decimal places.) $6,344.09 million $67,122.55 million $66,519.07 million $55,432.56 million Globex Corp.’s debt has a market value of $41,574 million, and Globex Corp. has no preferred stock. If Globex Corp. has 300 million shares of common stock outstanding, what is Globex Corp.’s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $45.20 $138.58 $46.20 $50.81
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 18P: Free Cash Flow Valuation
Dozier Corporation is a fast-growing supplier of office products. Analysts...
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More on the corporate valuation model
Globex Corp. is expected to generate a free cash flow (FCF) of $2,020.00 million this year (FCF₁ = $2,020.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Globex Corp.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Globex Corp.? (Note: Round all intermediate calculations to two decimal places.)
$6,344.09 million
$67,122.55 million
$66,519.07 million
$55,432.56 million
Globex Corp.’s debt has a market value of $41,574 million, and Globex Corp. has no preferred stock . If Globex Corp. has 300 million shares of common stock outstanding, what is Globex Corp.’s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)
$45.20
$138.58
$46.20
$50.81
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