Widget Corp. is expected to generate a free cash flow (FCF) of $5,645.00 million this year (FCF₁ = $5,645.00 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 Widget Corp.’s weighted average cost of capital (WACC) is 6.30%, what is the current total firm value of Widget Corp.? (Note: Round all intermediate calculations to two decimal places.)
A. $212,237.87 million
B. $179,693.98 million
C.$215,632.78 million
D. $17,910.49 million
