Question

Stay Swift Corp. has an expected net operating profit after taxes, EBIT(1 – T), of $14,700...

Stay Swift Corp. has an expected net operating profit after taxes, EBIT(1 – T), of $14,700 million in the coming year. In addition, the firm is expected to have net capital expenditures of $2,205 million, and net working capital (NWC) is expected to increase by $45 million. How much free cash flow (FCF) is Stay Swift Corp. expected to generate over the next year? $248,416 million $16,860 million $12,450 million $12,540 million Stay Swift Corp.’s FCFs are expected to grow at a constant rate of 4.26% per year in the future. The market value of Stay Swift Corp.’s outstanding debt is $65,757 million, and preferred stocks’ value is $36,532 million. Stay Swift Corp. has 675 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 12.78%. Term Value (Millions) Total firm value Value of common equity Intrinsic value per share Using the preceding information and the FCF you calculated in the previous question, calculate the appropriate values in this table.

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