Question1

Sixty Second Avenue Inc. has an expected net operating profit after taxes, EBIT(1 - T), of $1,100 million in the coming year. In addition, the firm is expected to have net capital expenditures of $165 million, and net operating working capital (NOWC) is expected to increase by $30 million. How much free cash flow (FCF) is Sixty Second Avenue Inc. expected to generate over the next year? $21,730 million $905 million $1,235 million $965 million Sixty Second Avenue Inc.'s FCFs are expected to grow at a constant rate of 3.54% per year in the future. The market value of Sixty Second Avenue Inc.'s outstanding debt is $5,752 million, and preferred stocks' value is $3,196 million. Sixty Second Avenue Inc. has 450 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 10.62%. Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table. If Sixty Second Avenue Inc. also had $237 million in marketable securities on its balance sheet, the intrinsic value per share would be_______