Question: help needed with both questions please and thanks Lex Corp. is expected to generate a free cash flow (FCF) of $6,350.00 million this year (FCF1

help needed with both questions please and thanks
help needed with both questions please and thanks Lex Corp. is expected

Lex Corp. is expected to generate a free cash flow (FCF) of $6,350.00 million this year (FCF1 =$6,350.00 million), and the FCF is expected to grow of a rate of 19.00% over the following two years (FCF2 and F(F3 ). After the third year, however, the FCF is expected to grow at a constant rote of 2.10% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Lex Corp.'s weighted average cost of capital (WACC) is 6.30%, What is the current total firm value of Lex Corp.? (Note: Round all intermediate calculations to two decimal places.) $238,744.22 million $20,147.32 milion $242,563.12 mition $202,135.93 million Lex Corp.'s debt has a market value of \$151,602 milion, and Lex Corp; has no preferred stock. If Lex Corp. has 375 million shares of common stock outstanding, what is Lex Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) 5133.76 $134.76 $148.23 $404.27

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!