Question

11. More on the corporate valuation model Aa Aa Smith and T Co. is expected to generate a free cash flow (FCF) of $10,615.00 million this year (FCF1 $10,615.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF2 and FCF). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF If Smith and T Co.'s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Smith and T Co. O $318,207.61 million O $256,539.21 million O $33,003.35 million $307,847.05 million Smith and T Co.'s debt has a market value of $192,404 million, and Smith and T Co. has no preferred stock. If Smith and T Co. has 150 million shares of common stock outstanding, what is Smith and T Co.'s estimated intrinsic value per share of common stock? O $1282.70 $427.57 O $470.32 O $426.57