8-5: The Constant Growth Model: Valuation when Expected Free Cash Flow Grows at a Constant Rate Problem Walk-Through Problem 8-17 Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 9%. The company's weighted average cost of capital is 18%. a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest cent. $ b. Calculate the value of Kendra's operations. Round your answer to the nearest cent. Round intermediate calculations to two decimal places. $ Check My Work o DI hp insert 14