Globo-Chem Co. is expected to generate a free cash flow (FCF) of s1,065.00 million this year (FCF, - $1,065.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCr.). Assume the firm has no nonoperating assets. If Globo-Chem Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.) $21,183,44 million O $3,183.42 million $17,652.87 million O 123,939.64 million Globo-Chem Co.s debt has a market value of s13,240 million, and Globo-Chem Co. has no preferred stock, If Globo-Chem Co. has 600 milion shares of common stock outstanding, what is Globo-Chem Co.s estimated intrinsic value per share of comman stock? (Note: Round all intermediate calculations to two decimal places.) $8.09 O $6.35 O $22.07 $7.35

Globo-Chem Co. is expected to generate a free cash flow (FCF) of s1,065.00 million this year (FCF, - $1,065.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCr.). Assume the firm has no nonoperating assets. If Globo-Chem Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.) $21,183,44 million O $3,183.42 million $17,652.87 million O 123,939.64 million Globo-Chem Co.s debt has a market value of s13,240 million, and Globo-Chem Co. has no preferred stock, If Globo-Chem Co. has 600 milion shares of common stock outstanding, what is Globo-Chem Co.s estimated intrinsic value per share of comman stock? (Note: Round all intermediate calculations to two decimal places.) $8.09 O $6.35 O $22.07 $7.35

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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