Randall and Arts Inc. has an expected net operating profit after taxes, EBIT(1-T), of $3,200 million in the coming year. In addition, the firm is expected to have net capital expenditures of $480 million, and net operating working capital (NOWC) is expected to increase by $35 million.

FCF expected to be generated over the next year is $2,685 million.

Randall and Arts Inc.’s FCFs are expected to grow at a constant rate of 4.98% per year in the future. The market value of Randall and Art’s Inc.’s outstanding debt is $12,131 million, and preferred stocks’ value is $6,739 million. Randall and Arts Inc. has 525 million shares of common stock outstanding, and its weighted average cost of capital (WACC) equals 14.94%. What is the:

1. Total firm value

a) $17,971.89

b) $26,957.83

c) $81,203.11

d) $53,915.66

2. Value of common equity

a) $14,826.83

b) $8,087.83

c) $14,301.83

d) $20,218.83

3. Intrinsic value per share

a) $38.51

b) $27.24

c) $15.41

d) $28.24