Consider the case of Purple Panda Pharmaceuticals Inc.: Purple Panda Pharmaceuticals Inc. is expected to generate a free cash flow $($FCF$)$ of $ $1,340,000$ this year, and the FCF is expected to grow at a rate of $18\%$ over the following two years $($ FCF$\_2$ and FCF$\_3).$ After the third year, however, the company's FCFs are expected to grow at a constant rate of $8\%$ per year, which will last forever FCF$\_4-\backslash$infty $).$ If Purple Panda's weighted average cost of capital $($WACC$)$ is $16\%,$ complete the following table and compute the current value of Purple Panda's operations. Round all dollar amounts to the nearest whole dollar, and assume that the firm does not here any nonoperating assets in its balance sheet and that all FCFs occur at the end of each year.Purple Panda's debt has a market value of $ $14,747,118,$ and Purple Panda has no preferred stock in its capital structure. If Purple Panda has $200,000$ shares of common stock outstanding, then the total value of the company's common equity is $,$ and the estimated intrinsic value per share of its common stock is per share.Consider the case of Purple Panda Pharmaceuticals Inc.:

Purple Panda Pharmaceuticals Inc. is expected to generate a free cash flow $($FCF$)$ of $$1,340,000$ this year, and the FCF is expected to grow at a rate of

$18\%$ over the following two years and $FC{F}_3).$ After the third year, however, the company's FCFs are expected to grow at a constant rate of $8\%$

per year, which will last forever $(FC{F}_4-).$ If Purple Panda's weighted average cost of capital $($WACC$)$ is $16\%,$ complete the following table and

compute the current value of Purple Panda's operations. Round all dollar amounts to the nearest whole dollar, and assume that the firm does not have

any nonoperating assets in its balance sheet and that all FCFs occur at the end of each year.

Purple Panda's debt has a market value of $$14,747,118,$ and Purple Panda has no preferred stock in its capital structure. If Purple Panda has $200,000$

shares of common stock outstanding, then the total value of the company's common equity is $|,$ and the estimated intrinsic value

per share of its common stock is

per share $($rounded to the nearest dollar$).$

Assume the following:

The end of Year $3$ differentiates Purple Panda's short$-$term and long$-$term FCFs$.$

Professionally$-$conducted studies have shown that more than $80\%$ of the average company's share price is attributable to long$-$term$-$

rather than short$-$term$-$cash flows.

Is the percentage of Purple Panda's expected long$-$term cash flows consistent with the value cited in the professional studies?

No$,$ because the percentage of Purple Panda's expected long$-$term cash flows is actually $17\mathrm{.}93\%.$

No$,$ because only $62\mathrm{.}76\%$ of the firm's share price is derived from its expected long$-$term free cash flows.

Yes, because $72\mathrm{.}22\%$ of the firm's share price is derived from its expected long$-$term free cash flows.

Yes, because $82\mathrm{.}07\%$ of the firm's share price is derived from its expected long$-$term free cash flows.