8. Determinants of intrinsic value Which of the following correctly represents a firm's fundamental value? The ratio of the firm's free cash flows and its weighted average cost of capital. The present value of the firm's expected free cash flows. The difference between the firm's free cash flows and its costs. The following table presents some of the current year's financial data for the Happy Giraffe Construction Company. Complete the table by computing Happy Giraffe's free cash flows and fundamental value (rounded to the nearest whole dollar) based solely on this year's information: Variable Value Sales revenue $300,000 Operating costs and taxes $55,000 Required investments in operating capital $25,000 Weighted average cost of capital 6.50% Annual free cash flow Fundamental value Assuming all other things being equal, if Happy Giraffe's sales revenues increase, the firm's will