Question: 11. More on the corporate valuation model Aa Aa E ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $11,210.00 million
11. More on the corporate valuation model Aa Aa E ABC Telecom Inc. is expected to generate a free cash flow (FCF) of $11,210.00 million this year (FCF: = $11,210.00 million), and the FCF is expected to grow at a rate of 25.00% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 3.90% per year, which will last forever (FCFA). If ABC Telecom Inc.'s weighted average cost of capital (WACC) is 11.70%, what is the current total firm value of ABC Telecom Inc.? $ 201,246.81 million O $33,834.57 million $241,496.17 million $267,151.75 million ABC Telecom Inc.'s debt has a market value of $150,935 million, and ABC Telecom Inc. has no preferred stock. If ABC Telecom Inc. has 150 million shares of common stock outstanding, what is ABC Telecom Inc.'s estimated intrinsic value per share of common stock? $368.95 $335.41 O $334.41 O $1006.23
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
