Happy Fliers Aviation Inc.s free cash flows (FCFs) are expected to grow at a constant long-term growth rate (gLgL) of 19% per year into the future. Next year, the company expects to generate a free cash flow of $2,000,000. The market value of Happy Flierss outstanding debt and preferred stock is $10,000,000 and $5,555,556, respectively. Happy Fliers has 1,500,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 28%.

Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet.

Term	Value
Value of Operations
Value of Firms Common Equity
Value of Common Stock (per share)

Oops, a more careful review of Happy Flierss balance sheet actually reports a $2,620,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Happy Flierss common equity (expressed on a per-share basis) assuming no other changes to the Happy Fliers financial situation? Review the statements below and select those that accurately describe Happy Flierss financial situation. Check all that apply.

A. The intrinsic value of the companys common stock isnt affected by the new information.

B. The intrinsic value of Happy Flierss common stock increases with the inclusion of the companys marketable securities portfolio into the analysis.

C. The greater the market value of the marketable securities portfolio, the smaller the companys total intrinsic (entity) value.

D. The intrinsic value of Happy Flierss common stock decreases with the inclusion of the companys marketable securities portfolio into the analysis.