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Ch 09: Assignment - Stocks and Their Valuation The corporate valuation model, the price-to-earnings (P/E) multiple approach, and the economic value added (EVA) approach are some examples of valuation techniques. The corporate valuation model is similar to the dividend based valuation that you've done in previous problems, but it focuses on a firm's free cash flows (FCFS) instead of its dividends. Some firms don't pay dividends, or their dividends ate difficult to forecast. For that reason, some analysts use the corporate valuation model. Blur Corp. has an expected net operating profit after taxes, EBIT(1 - T), of $7,600 million in the coming year. In addition, the firm is expected to have net capital expenditures of 51.140 million, and net operating working capital (NOWC) is expected to increase by $10 million. How much free cash flow (FCE) is Blur Corp, expected to generate over the next year? $6,450 million $9,730 million $118.668 million 16,470 million Blur Corp. FCFs are expected to grow at a constant rate of 462 per year in the future. The market value of Blur Corp.'s outstanding debt is $31.412 million and its preferred stocks' value is $17.451 million Blue Corp. has 150 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 13.86% Ch 09: Assignment - Stocks and Their Valuation U0,430 ON o $8,730 million O $118,668 million $6,470 million Blur Corps Fofs are expected to grow at a constant rate of 4,62% per year in the future. The market value of Blur Corps outstanding debt is $31.412 million, and its preferred stocka" value is $17A53 million Blur Corp, has 150 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 19.80% Term Value (Millions) Total firm value Intrinsic value of common equity Intrinsic value per share ory Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table, Assume the firm has no nonoperating assets

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