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
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
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you