$8.$ Determinants of intrinsic value

Which of the following is a determinant of a firm$$s free cash flows?

Cost of equity

Firm$$s business risk

Sales revenues

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:

Variable

Value

Sales revenue $$400,000$

Operating costs and taxes $$45,000$

Required investments in operating capital $$20,000$

Weighted average cost of capital $15\%$

Annual free cash flow $(?)$

Fundamental value $(?)$