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4. Corporate valuation model Flying Cow Aviation Inc.'s free cash flows (FCFs) are expected to grow at a constant long-term growth rate (g) of 14%
4. Corporate valuation model Flying Cow Aviation Inc.'s free cash flows (FCFs) are expected to grow at a constant long-term growth rate (g) of 14% per year into the future. Next year, the company expects to generate a free cash flow of $8,000,000. The market value of Flying Cow's outstanding debt and preferred stock is $51,428,571 and $28,571,429, respectively. Flying Cow has 6,750.000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 21%. Term Value Value of Operations Value of Firm's Common Equity Value of Common Stock (per share) S Given the preceding information,complete the adjacent table (rounding each value to the nearest whole dollar), am had any nonoperating assets in its balance sheet. that the firm has not Oops, a more careful review of Flying Cow's balance sheet actually reports a $2,480,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Flying Cow's common equity (expressed on a per-share basis) assuming no other changes to the Flying Cow financial situation? Review the statements below and select those that accurately describe Flying Cow's financial situation. Check all that apply. The intrinsic value of Flying Cow's common stock decreases with the inclusion of the company's marketable securities portfolio into the The greater the market value of the marketable securities portfolio, the smaller the company's total intrinsic (entity) value O The intrinsic value of Flying Cow's common stock increases with the inclusion of the company's marketable securities portfolio into the The intrinsic value of the company's common stock isn't affected by the new information
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