Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $14,180.00 million this year (FCF-$14,190.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF and FCFs). After the third year however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF). Assume the firm has no nonoperating assets. If Omni Consumer Products Co's weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Omni Consumer Products Co.? (Note: Round all intermediate calculations to tivo decimal places.) O $235,039.29 milion $282.047.15 million) O$42.385.81 million O$318.744.50 million Omni Consumer Products Co.'s debt has a market value of $176.279 million, and Omni Consumer Products Co. has no preferred stock. If Omni Consumer Products Co. has 225 million shares of common stock outstanding, what is Omni Consumer Products Co.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places) O $261.16 O $703.46 O $260.16 O $287.27

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
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5. More on the corporate valuation model
Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $14.180.00 million this year (FCFS=$14,180.00 million), and the FOF
is expected to grow at a rate of 26.20% over the following two years (FCF and FCFs). After the third year however, the FCF is expected to grow at a
constant rate of 4.26% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Omni Consumer Products Co.'s
weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Omni Consumer Products Co.? (Note: Round all
intermediate calculations to tvo decimal places.)
O$235.039.29 milion
O$282,047.15 million
O $42.385.81 million.
O$318.744.50 million
Omni Consumer Products Co.'s debt has a market value of $176.279 million, and Omni Consumer Products Co. has no preferred stock. If Omni
Consumer Products Co. has 225 million shares of common stock outstanding, what is Omni Consumer Products Co.'s estimated intrinsic value per
share of common stock? (Note: Round all Intermediate calculations to two decimal places.)
$261.16
$763.46
O $260.16
O $287.27
Transcribed Image Text:ory 5. More on the corporate valuation model Omni Consumer Products Co. is expected to generate a free cash flow (FCF) of $14.180.00 million this year (FCFS=$14,180.00 million), and the FOF is expected to grow at a rate of 26.20% over the following two years (FCF and FCFs). After the third year however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF4). Assume the firm has no nonoperating assets. If Omni Consumer Products Co.'s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Omni Consumer Products Co.? (Note: Round all intermediate calculations to tvo decimal places.) O$235.039.29 milion O$282,047.15 million O $42.385.81 million. O$318.744.50 million Omni Consumer Products Co.'s debt has a market value of $176.279 million, and Omni Consumer Products Co. has no preferred stock. If Omni Consumer Products Co. has 225 million shares of common stock outstanding, what is Omni Consumer Products Co.'s estimated intrinsic value per share of common stock? (Note: Round all Intermediate calculations to two decimal places.) $261.16 $763.46 O $260.16 O $287.27
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