Drop downs are not needed to answer

s. The multi-stage valuation model Consider the case of Red Rabbit Builders: Red Rabbit Builders is expected to generate a free cash flow (FCF) of $1,585,000 this year, and the FCF is expected to grow at a rate of 16% over the following two years (FC2 and FCF). After the third year, however, the company's FCFs are expected to grow at a constant rate of 7% per year, which will last forever (FCF4-"). If Red Rabbit's weighted average cost of capital (WACC) is 14%, complete the following table and compute the current value of Red Rabbit'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 Year FCFL FCF2 PV(FCF:) CFt $1,585,000 FOF Horizon value. Red Rabbit's debt has a market value of $19,687,052, and Red Rabbit has no preferred stock in its capital structure If Red Rabbit has 300,000 shares of common stock outstanding, then the total value of th company's common equity is share , and the estimated intrinsic value per share of its common stock is per Assume the following: The end of Year 3 differentiates Red Rabbit's short-term and long-tern FCFs * Professionally-conducted studies have shown that more than 80% of the average company's share pnce is attributable to long-term-rather than short-term-cash flows is the percentage of Red Rabbit's expected long-term cash flows consistent with the value dited in the protessi studies? No, because the percentage of Red Rabbits expected long-term cash nows is actually 16 17%. No, becase only 56.60% of the firm's share price is derived from its expected long-term free cash flows. Yes, because 73.77% of the firm's share price is derived from its expected long-term free cash flows. 83.83% of the firms share price is derived from its expected long-term ree cash flows. O ves, because