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4. Corporate valuation model Purple Panda Pharmaceuticals Inc.'s free cash flows (FCFS) are expected to grow at a constant long-term growth rate (gL) of 20%
4. Corporate valuation model Purple Panda Pharmaceuticals Inc.'s free cash flows (FCFS) are expected to grow at a constant long-term growth rate (gL) of 20% per year into the future. Next year, the company expects to generate a free cash flow of $8,000,000. The market value of Purple Panda's outstanding debt and preferred stock is $36,000,000 and $20,000,000, respectively. Purple Panda has 3,000,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 30%. Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet. Term Value of Operations Value of Firm's Common Equity Value of Common Stock (per share) Value $ $ $
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