cent.

$

per share

Quantitative Problem $2$: Hadley Inc. forecasts the year$-$end free cash flows $($in millions$)$ shown below.

shares outstanding. What is the value of the stock price today $($Year $0)?$ Do not round intermediate calculations. Round your answer to the nearest cent.

$

per share

According to the developed valuation models, the value that an investor assigns to a share of stock is dependent on the length of time the investor plans to hold the stock.

The statement above is

Condusions

should find the same intrinsic value using either model, but differences are often observed.

and financing needs. Also, such an analysis can provide insights into actions that might be taken to increase the company's value; and for this reason, it is integral to the planning and forecasting process.