Widget Corp. is expected to generate a free cash flow (FCF) of $1,835.00 million this year (FCF₁ = $1,835.00 million), and the FCF is expected to grow at a rate of 21.40% over the following two years (FCF₂ and FCF₃). After the third year, however, the FCF is expected to grow at a constant rate of 2.82% per year, which will last forever (FCF₄). Assume the firm has no nonoperating assets. If Widget Corp.’s weighted average cost of capital (WACC) is 8.46%, what is the current total firm value of Widget Corp.? (Note: Round all intermediate calculations to two decimal places.) $44,347.57 million $53,217.08 million $55,008.09 million $5,705.25 million
