More on the corporate valuation model

Luthor Corp. is expected to generate a free cash flow $($FCF$)$ of $$10,505\mathrm{.}00$ million this year $(FCF,=$$$10,505\mathrm{.}00$ million$),$ and the FCF is expected to

grow at a rate of $21,40\%$ over the following two years $($ FCF$,$ and FCF$,).$ After the third year, however, the FCF is expected to grow at a constant rate of

$2\mathrm{.}82\%$ per year, which will last forever $((C{F}_4).$ Assume the firm has no nonoperating assets. If Luthor Corp.$\text{'}$s weighted average cost of capital $($WACC$)$

is $8\mathrm{.}46\%,$ what is the current total firm value of Luthor Corp.? $($Note: Round all intermediate calculations to two decimal places.$)$

$$32,661\mathrm{.}33$ million

$$314,910\mathrm{.}09$ million

$$304,656\mathrm{.}90$ million

$$253,880\mathrm{.}75$ million

Luthor Corp.$\text{'}$s debt has a market value of $$190,411$ million, and Luthor Corp. has no preferred stock. If Luthor Corp, has $525$ million shares of

common stock outstanding, what is Luthor Corp.$\text{'}$s estimated intrinsic value per share of common stock? $($Note: Round all intermediate calculations to

two decimal places.$)$

$$119\mathrm{.}89$

$$132\mathrm{.}98$

$$120\mathrm{.}89$

$$362\mathrm{.}69$