Praxis Corp. is expected to generate a free cash flow (FCF) of $135.00 million this year...

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Praxis Corp. is expected to generate a free cash flow (FCF) of$135.00 million this year (FCF? = $135.00 million), and the FCF isexpected to grow at a rate of 19.00% over the following two years(FCF? and FCF?). After the third year, however, the FCF is expectedto grow at a constant rate of 2.10% per year, which will lastforever (FCF?). Assume the firm has no nonoperating assets. IfPraxis Corp.’s weighted average cost of capital (WACC) is 6.30%,what is the current total firm value of Praxis Corp.? (Note: Roundall intermediate calculations to two decimal places.)
$4,297.21 million
$5,156.65 million
$428.32 million
$5,075.46 million
Praxis Corp.’s debt has a market value of $3,223 million, andPraxis Corp. has no preferred stock. If Praxis Corp. has 525million shares of common stock outstanding, what is Praxis Corp.’sestimated intrinsic value per share of common stock? (Note: Roundall intermediate calculations to two decimal places.)
$2.05
$1.05
$6.14
$2.25

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Praxis Corp. is expected to generate a free cash flow (FCF) of$135.00 million this year (FCF? = $135.00 million), and the FCF isexpected to grow at a rate of 19.00% over the following two years(FCF? and FCF?). After the third year, however, the FCF is expectedto grow at a constant rate of 2.10% per year, which will lastforever (FCF?). Assume the firm has no nonoperating assets. IfPraxis Corp.’s weighted average cost of capital (WACC) is 6.30%,what is the current total firm value of Praxis Corp.? (Note: Roundall intermediate calculations to two decimal places.)$4,297.21 million$5,156.65 million$428.32 million$5,075.46 millionPraxis Corp.’s debt has a market value of $3,223 million, andPraxis Corp. has no preferred stock. If Praxis Corp. has 525million shares of common stock outstanding, what is Praxis Corp.’sestimated intrinsic value per share of common stock? (Note: Roundall intermediate calculations to two decimal places.)$2.05$1.05$6.14$2.25