Globo-Chem Co. is expected to generate a free cash flow (FCF) of S8,385.00 million this year (FCF, = $8,385.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCFA). 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.) %3D $25,063.83 million $188,481.79 million $138,984.76 million C166 70171 million

Globo-Chem Co. is expected to generate a free cash flow (FCF) of S8,385.00 million this year (FCF, = $8,385.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF2 and FCF3). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCFA). 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.) %3D $25,063.83 million $188,481.79 million $138,984.76 million C166 70171 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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