11. More on the corporate valuation model = Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $4,835.00 million this year (FCF, $4,835.00 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 2.82% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.) $116,850.34 million $144,939.51 million $140,220.41 million $15,032.60 million Ankh-Sto Associates Co.'s debt has a market value of $87,638 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 150 million shares of common stock outstanding, what is Ankh-Sto Associates Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $193.75 $584.25 $214.22 $194.75

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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11. More on the corporate valuation model
=
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $4,835.00 million this year (FCF, $4,835.00 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 2.82% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted
average cost of capital (WACC) is 8.46%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations
to two decimal places.)
$116,850.34 million
$144,939.51 million
$140,220.41 million
$15,032.60 million
Ankh-Sto Associates Co.'s debt has a market value of $87,638 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co.
has 150 million shares of common stock outstanding, what is Ankh-Sto Associates Co.'s estimated intrinsic value per share of common stock? (Note:
Round all intermediate calculations to two decimal places.)
$193.75
$584.25
$214.22
$194.75
Transcribed Image Text:11. More on the corporate valuation model = Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $4,835.00 million this year (FCF, $4,835.00 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 2.82% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.) $116,850.34 million $144,939.51 million $140,220.41 million $15,032.60 million Ankh-Sto Associates Co.'s debt has a market value of $87,638 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 150 million shares of common stock outstanding, what is Ankh-Sto Associates Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $193.75 $584.25 $214.22 $194.75
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