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10. Corporate valuation model Aa Aa E The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the e

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Answer #1

1.

=EBIT*(1-T)-Capital Expenditure-Working Capital

=3200-480-30

=2690 million

2.

=FCF1/(WACC-g)

=2690/(8.46%-2.82%)

=47695.0355 million

3.

=Total Firm Value-Value of Debt-Value of Preferred Stock

=47695.0355-21463-11924

=14308.0355 million

4.

=Equity Value/Number of shares

=14308.0355/450

=31.7956

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