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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
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
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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
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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