Question: < Back to Assignment Attempts: Average: /2 11. More on the corporate valuation model = Demo Inc. is expected to generate a free cash
< Back to Assignment Attempts: Average: /2 11. More on the corporate valuation model = Demo Inc. is expected to generate a free cash flow (FCF) of $5,925.00 million this year (FCF, $5,925.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF.). Assume the firm has no nonoperating assets. If Demo Inc.'s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Demo Inc.? (Note: Round all intermediate calculations to two decimal places.) $222,765.31 million $226,328.60 million $18,798.88 million $188,607.17 million Demo Inc.'s debt has a market value of $141,455 million, and Demo Inc. has no preferred stock. If Demo Inc. has 375 million shares of common stock outstanding, what is Demo Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $125.74 $124.74 $138.31 $377.21 Grade It Now Save & Continue
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