Praxis Corp. is expected to generate a free cash flow (FCF) of $7,360.00 million this year (FCF₁ = $7,360.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Praxis Corp.’s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Praxis Corp.? (Note: Round all intermediate calculations to two decimal places.)

$202,216.54 million

Explanation:

FCF₁ = $7,360 million

FCF₂ = $8,846.72 million

FCF₃ = $10,633.76 million

FCF₄ = $10,910.24 million and will continue to grow at 2.46%

we must first determine the terminal value at year 3:

terminal value = $10,910.24 million / (7.38% - 2.46%) = $221,752.85 million

firm's current total value = $7,360 million / 1.0738 + $8,846.72 million / 1.0738² + $10,633.76 million / 1.0738³ + $221,752.85 / 1.0738³ = $6,854.16 + $7,672.48 + $8,588.49 + $179,101.41 = $202,216.54

an important city to the south and the region's capital is c. kiev

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.