Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $2,170.00 million this year (FCF1 = $2,170.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.) 1 O $82,891.70 million O $81,586.66 million O $69,076.42 million O $6,884.99 million Ankh-Sto Associates Co.'s debt has a market value of $51,807 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 600 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.) O $28.78 O $27.78 O $86.35 O $31.66
Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $2,170.00 million this year (FCF1 = $2,170.00 million), and the FCF is expected to grow at a rate of 19.00% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 2.10% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations to two decimal places.) 1 O $82,891.70 million O $81,586.66 million O $69,076.42 million O $6,884.99 million Ankh-Sto Associates Co.'s debt has a market value of $51,807 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co. has 600 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.) O $28.78 O $27.78 O $86.35 O $31.66
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
55
![Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $2,170.00 million this year (FCF1 = $2,170.00 million), and the FCF is
expected to grow at a rate of 19.00% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a
constant rate of 2.10% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted
average cost of capital (WACC) is 6.30%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations
to two decimal places.)
1
O $82,891.70 million
O $81,586.66 million
O $69,076.42 million
O $6,884.99 million
Ankh-Sto Associates Co.'s debt has a market value of $51,807 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co.
has 600 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.)
O $28.78
O $27.78
O $86.35
O $31.66](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea7f9626-cbeb-40dd-89e8-5820cd6fdc7e%2Fff6c9075-4a6c-4c8f-9813-09e475b972bd%2F6p7kzzmn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ankh-Sto Associates Co. is expected to generate a free cash flow (FCF) of $2,170.00 million this year (FCF1 = $2,170.00 million), and the FCF is
expected to grow at a rate of 19.00% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a
constant rate of 2.10% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Ankh-Sto Associates Co.'s weighted
average cost of capital (WACC) is 6.30%, what is the current total firm value of Ankh-Sto Associates Co.? (Note: Round all intermediate calculations
to two decimal places.)
1
O $82,891.70 million
O $81,586.66 million
O $69,076.42 million
O $6,884.99 million
Ankh-Sto Associates Co.'s debt has a market value of $51,807 million, and Ankh-Sto Associates Co. has no preferred stock. If Ankh-Sto Associates Co.
has 600 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.)
O $28.78
O $27.78
O $86.35
O $31.66
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