3. Stocks and Their Valuation: Corporate Valuation Model the corporate valuation model. The market value of a fim is equal to the present value of its expected future free cash flows plus the market value of its non-operating assets: constant rate, the equation to calculate the continuing value of the firm's operations at that date is Horizonvalue=VCampmessopccatsoceat:N=FCFN+1/(WACCgFCF) nonconstant growth. Do not raund internediate calculations. Round your ariswer to the neearest cent. 5 per share Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. million shares outstanding. Aso, the firm has zero non-operating assets. What is the value of the stock price today (Year o)? Round your answer to the nearest cent. Do not round intermedlate calculations. per share According to the valuation models developed in this chapter, the value that an investor assigns to a share of 5 tock is dependent on the length of time the investor plans to hold the stock. The statement above is Canclusions principle, we should find the same intrinsic value using either model, but dirferences are often observed