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

The answer is $259,116.04 million

Explanation:

The current total firm value of Allied Biscuit Co will be equal to the present value of future cash flow of the firm.

Present value of FCF1 = 8,140 million / 1.063 = $7,657.57 million;

Present value of FCF2 = (8,140 x 1.19) / 1.063^2 = $8,572.45 million;

Present value of FCF3 =  (8,140 x 1.19^2) / 1.063^3 = $9,596.63 million.

Present value of the growing perpetuity at 2% of cash flow after year 3:

[ (8,140 x 1.19^2 x 1.021) / ( 6.3% - 2.1%) ] / 1.063^3  = $233,289.39 million.

So, the current total firm value:

7,657.57 + 8,572.45 + 9,596.63 + 233,289.39 = $259,116.04 million.

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.

2b2t

explanation:

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