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The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are

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Answer #1

Free Cash Flow (FCF) = EBIT*(1 - Tax) + Depreciation - NOWC - Net Capex

FCF = $14,200 + 0 - $2,130 - $35

FCF = $12,035 million

Value of firm can be calculated as PV of FCF expected in future

FCF Value = r -9

Value = 12,035 0.1062 – 0.0354

Value of firm = $169,985.88 million

Value of Firm = Value of Debt + value of preferred equity + Value of common equity

$169,985.88 = $76,494 + $42,496 + Value of common equity

Value of common equity = $50,995.88 million

Intrinsic value of share = Value of common equity/Number of shares outstanding

Intrinsic value of share = $50,995.88million/525million = $97.14/share

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