10. Corporate valuation model Aa Aa The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value-added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend-based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends are difficult to forecast. For that reason, some analysts use the corporate valuation model. Sixty Second Avenue Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $13,500 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,025 million, and net operating working capital (NOWC) is expected to increase by $25 million. How much free cash flow (FCF) is Sixty Second Avenue Inc. expected to generate over the next year? $11,450 million $15,500 million $306,053 million $11,500 million Sixty Second Avenue Inc.'s FCFs are expected to grow at a constant rate of 3.18% per year in the future. The market value of Sixty Second Avenue Inc.'s outstanding debt is $81,014 million, and preferred stocks' value is $45,008 million. Sixty Second Avenue Inc. has 375 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 9.54%. Term Value (Millions) Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. Total firm value Value of common equity Intrinsic value per share