d$.$ Calculate the current value of operations. First, calculate the terminal value at the end of the forecast period, which is equal to the value of operations at the end of the forecast period. Assume that the annual growth rate beyond the terminal value is equal to the growth rate between projected FCF from $2026$ and $2027.$ How does the current value of operations compare with the current amount of total net operating capital?

Weighted average cost of capital $($WACC$)$

Free cash flow

Long$-$term constant growth in FCF

Horizon value

Present value of horizon value

Present value of forecasted FCF

Value of operations $($IPV of HV$]+[$PV of FCF$])$ $$746\mathrm{.}4$

Total net operating capital

e$.$ Calculate the price per share of common equity as of $\frac{12}{31}\frac{?}{2023}$

Millions except price per share

Value of operations

Value of short$-$term investments

Total value of company

Total value of all debt

Value of preferred stock

Value of common equity

Divided by number of shares

Price per share

Actual

$\frac{12}{31}\frac{?}{23}$

$$20\mathrm{.}0$

$$396\mathrm{.}0$

$$15\mathrm{.}0$