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Happy Fliers Aviation Inc. is expected to generate a free cash flow (FCF) of $990,000 this year, and the FCF is expected to grow at

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Happy Fliers Aviation Inc. is expected to generate a free cash flow (FCF) of $990,000 this year, and the FCF is expected to grow at a rate of 10% over the following two years ( FCF2 and FCF3 ). After the third year, however, the company's FCFs are expected to grow at a constant rate of 4% per year, which will last forever (FCF 4. ). If Happy Fliers's weighted average cost of capital (WACC) is 8%, complete the following table and compute the current value of Happy Fliers'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: Happy Fliers's debt has a market value of $20,644,098, and Happy Fliers has no preferred stock in its capital structure. If Happy Fliers has 300,000 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 Happy Fliers's short-term and Iong-term FCFs. - Professionally-conducted studies have shown that more than 80% of the average company's share price is attributable to long-termrather than short-term-cash fiows. Is the percentage of Happy Fliers's expected long-term cash flows consistent with the value cited in the professional studies? No, because only 35.63% of the firm's share price is derived from its expected long-term free cash flows. Yes, because 79.04% of the firm's share price is derived from its expected long-term free cash flows. No, because the percentage of Happy Fliers's expected long-term cash flows is actually 10.18%. Yes, because 89.82% of the firm's share price is derived from its expected long-term free cash flows

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