Question: Back to Assignment Attempts Do No Harm/2 11. More on the corporate valuation model Acme Inc. is expected to generate a free cash flow (FCF)

Back to Assignment Attempts Do No Harm/2 11. More on the corporate valuation model Acme Inc. is expected to generate a free cash flow (FCF) of $3,180.00 million this year (FCF. - $3,180.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCFa 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 Acme Inc.'s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Acme Inc.? (Note: Round all intermediate calculations to two decimal places.) $101,227.24 million O $10,089.52 milion $121,472.69 million O $119,560.23 million Acme Inc.'s debt has a market value of $75,920 million, and Acme Inc. has no preferred stock. If Acme Inc. has 750 million shares of common stock outstanding, what is Acme Inc.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $37.12 $101.23 $32.74 $33.74
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