Marketvalueofcompany=(1+WACC)1FCF1+(1+WACC)2FCF2++(1+WACC)FCF the equation to calculate the continuing value of the firm at that date is: Horizonvalue=VCompanyatt=N=FCFN+1/(WACC-FCF) The market value of equity is divided by the number of common shares outstanding to estimate the firm's intrinsic per-share value. growth. $ per share Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. outstanding. What is the value of the stock price today (Year 0 )? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share According to the developed valuation models, the value that an investor assigns to a share of stock is dependent on the length of time the investor plans to hold the stock. The statement above is - select- v. Conclusions should find the same intrinsic value using either model, but differences are often observed. and financing needs. Also, such an analysis can provide insights into actions that might be taken to increase the company's value; and for this reason, it is integral to the planning and forecasting process