Suppose a firm shows the following values related to its capital structure, some of which come from
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Question:
Suppose a firm shows the following values related to its capital structure, some of which come from the firm's Balance Sheet and Income Statement (note: the firm's long-term debt is comprised exclusively of bonds):
- Common Stock Dividends Per Share = $0.19
- Common Shares Outstanding = 241,936
- Market Price Per Share: Common = $12.13
- Preferred Stock Dividends Per Share = $0.65
- Preferred Shares Outstanding = 58,685
- Market Price Per Share: Preferred = $31.61
- Book Value of Long-Term Debt = $1,241,647
- Coupon Rate on Bonds Issued = 6.15%
- Per Bond Face Value = $1,000
- Bond Interest Payments Per Year = 2
- Firm's Current Cost of Borrowing in the Capital Markets = 8.59%
- Years Remaining to Bond Maturity = 13
- Total Revenue= $15,380,297
- Earnings Before Interest and Taxes = $3,861,154
- Fixed Assets = $15,499,905
- Cash and Equivalents = $180,500
- Free Cash Flow = $2,483,154
- NOPLAT = $2,548,813
- Return on Invested Capital (ROIC) = 14.19%
- Weighted Average Cost of Capital (WACC) = 10.19%
- Expected growth of FCF for next 3 year = 14.65%
- Expected growth of FCF for years 4+ = 3.72
Calculate the firm's market-based enterprise value.Express your answer as a whole dollar amount.
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