Business, 25.12.2019 23:31, hardwick744

Allied biscuit co. is expected to generate a free cash flow (fcf) of $8,140.00 million this year (fcf₁ = $8,140.00 million), and the fcf is expected to grow at a rate of 19.00% over the following two years (fcf₂ and fcf₃). after the third year, however, the fcf is expected to grow at a constant rate of 2.10% per year, which will last forever (fcf₄). assume the firm has no nonoperating assets. if allied biscuit co.’s weighted average cost of capital (wacc) is 6.30%, what is the current total firm value of allied biscuit co.? (note: round all intermediate calculations to two decimal places.)

a. $46,307.12 million
b. $548,735.93 million
c. $464,594.48 million
d. $557,513.38 million

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Allied biscuit co. is expected to generate a free cash flow (fcf) of $8,140.00 million this year (fc...