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1)Qwerty Logistics Corp

Finance Oct 23, 2020

1)Qwerty Logistics Corp. is expected to generate a free cash flow(FCF) of $10,415.00 million this year (FCF? = $10,415.00 million), and the FCF is expected to grow at a rate of 20.20% over the following two years (FCF? and FCF?). After the third year, however, the FCF is expected to grow at a constant rate of 2.46% per year, which will last forever (FCF?). Assume the firm has no nonoperating assets. If Qwerty Logistics Corp.'s weighted average cost of capital (WACC) is 7.38%, what is the current total firm value of Qwerty Logistics Corp.? (Note: Round all intermediate calculations to two decimal places.)

-$342,968.21 million
-$346,079.70 million
-$285,806.84 million 
-$32,709.78 million
2)Qwerty Logistics Corp.'s debt has a market value of $214,355 million, and Qwerty Logistics Corp. has no preferred stock. If Qwerty Logistics Corp. has 600 million shares of common stock outstanding, what is Qwerty Logistics Corp.'s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.)

-$119.09
-$357.26
-$131.00
-$118.09

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