Ch $09$: Assignment $-$ Stocks and Their Valuation

Extensive Enterprise Inc. is expected to generate a free cash flow $($FCF$)$ of $$6,765\mathrm{.}00$ million this year $(FC{F}_1=$$$6,765\mathrm{.}00$ million$),$ and the $F^{2}F$ is expected to grow at a rate of $20\mathrm{.}20\%$ over the following two years $(FC{F}_2$ and $FC{F}_3).$ After the third year, however, the $FCF$ is expected to grow at a constant rate of $2\mathrm{.}46\%$ per year, which will last forever $(FC{F}_4).$ Assume the firm has no nonoperating assets. If Extensive Enterprise Inc.$\text{'}$s weighted average cost of capital $($WACC$)$ is $7\mathrm{.}38\%,$ what is the current total firm value of Extensive Enterprise Inc.? $($Note: Round all intermediate calculations to two decimal places.$)$

$$222,772\mathrm{.}96$ million

$$21,246\mathrm{.}44$ million

$$224,794\mathrm{.}00$ million

$$185,644\mathrm{.}13$ million

Extensive Enterprise Inc.$\text{'}$s debt has a market value of $$139,233$ million, and Extensive Enterprise Inc. has no preferred stock. If Extensive Enterprise Inc. has $525$ million shares of common stock outstanding, what is Extensive Enterprise Inc.$\text{'}$s estimated intrinsic value per share of common stock?

$($Note: Round all intermediate calculations to two decimal places.$)$

$$87\mathrm{.}40$

$$88\mathrm{.}40$

$$97\mathrm{.}24$

$$265\mathrm{.}21$