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6. Determinants of intrinsic value Aa Aa Which of the following is a determinant of a firm's cost of capital? Education of managers Cost of

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6. Determinants of intrinsic value Aa Aa Which of the following is a determinant of a firm's cost of capital? Education of managers Cost of debt Required investments in operating capital The following table presents some of the current year's financial data for the Fantastique Fantom Costume Company. Complete the table by computing Fantastique Fantom's free cash flows and fundamental value (rounded to the nearest whole dollar) based solely on this year's information: Value Variable Sales revenue Operating costs and taxes Required investments in operating capital Weighted average cost of capital Annual free cash flow Fundamental value $300,000 $55,000 $25,000 6.50% Assuming all other things being equal, if Fantastique Fantom's free cash flows decrease, the firm's will fundamental value weighted average cost of capital

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