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Cost of debt Education of managers The following table presents some of the current year's financial data for the Happy Giraffe Construction Company. Complete the

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Cost of debt Education of managers 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 Sales revenue Operating costs and taxes Required investments in operating capital Weighted average cost of capital Annual free cash flow Fundamental value Value $850,000 $130,000 $150,000 12.50% weighted average cost of capital 1 fundamental value Assuming all other things being equal, if Happy Giraffe's free cash flows decrease, the firm's will Back to Assignment Attempts Average / 3 B. Determinants of intrinsic value Which of the following is a determinant of a firm's cost of capital? Sales revenues Cost of debt Education of managers 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 Sales revenue Operating costs and taxes Required investments in operating capital Weighted average cost of capital Annual free cash flow Value $850,000 $130,000 $150,000 12.50% decrease tal value increase will other things being equal, if Happy Giraffe's free cash flows decrease, the firm's Grade it Now Save & Continue Continue without saving

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