2) what is the value, ^Po, of a share of Hart Enterprise's stock?

3) If Hart Enterprises reduces its WACC to 10%, will the value of Hart Enterprises increase or decrease? Explain

On December 31, 2006, a stock analyst has foretasted that Hart Enterprises should generate free cash flows of $1,500 in 2007 and $2,000 in 2008 and $2,500 in 2009. Thereafter, free cash flow for Hart Enterprises is expected to grow at an annual rate of 4%. Hart Enterprises has a weighted average cost of capital (WACC) of 11%. Hart Enterprises Notes Payable plus Long-term Debt equal to $10,000 and no Preferred Stock. Hart Enterprises has 5,000 shares of common stock outstanding. What is the total value of Hart Enterprises (company)