Question: Aa Aa Widget Corp. is expected to generate a free cash flow (FCF) of $11,970.00 milion this year (FCF $11,970.00 million), and the FCF is
Aa Aa Widget Corp. is expected to generate a free cash flow (FCF) of $11,970.00 milion this year (FCF $11,970.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF2 and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF). If Widget Corp.'s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of widget Corp.? $347,143.58 million O $289,286.32 million $37,216.20 million $358,826.66 million Widget Corp.'s debt has a market value of $216,965 millin, and Widget Corp. has no preferred stock. If widget Corp has 225 million shares of common stock outstanding, what is Widget C orp.'s estimated intrinsic value per share of common stock? O $353.57 O $320.43 O $321.43 O $964.29
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