ming Cow Aviation Inc. is expected to generate a free cash flow (FCF) of $1,315,000 this year, and the FCF is expected to grow at a rate oi 6% over the following two years (FCF 2 and FCF 3 ). 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 (PCF4 m) lf Flying Cow's weighted average cost of capital CWACC) is 4%, complete the folloving table and compute the current value of Flying Cow's operations, Round all dollar amounts to the nearest whole dollar, and assume that the firm gtoes not have any nonoperating assets in its balance sheet and that all FCFs occur at the end of each year Year CF PV(FCF) FCFi $1,315,000 FCF2 FCF FCF4 Horizon Values Flying Cow's debt has a market value of $16,333,421, and Flying Cow has no preferred stock in its capital structure. If Flying Cow has 450,000 shares of common stock outstanding, then the total value of the company's common equity is s and the estimated intrinsie value per share of its common stock is s per share Assume the following The end of Year 3 differentiates Flying Cow's short-term and long-term FC's * Professionally-conducted studies have shown that more than 80% of the average company's share pnce is attributable to iong-term- rather than short-term-cash flows. Rying Cow's debt has a market value of $16,333,421, and Flying Cow has no preferred stock in its capital structure. If Flying Cow h of common stock outstanding, then the total value of the company's common equity is s , and the estimated intrinsi of its common stock is per share. Assume the following: The end of Year 3 differentiates Flying Cow's short-term and long-term FCFs * Professionally-conducted studies have shown that more than 80% of the average company's share price is attributable to long-term. rather than short-term-cash flows. Is the percentage of Flying Cow's expected long-term cash flows consistent with the value cited in the professional studies? Yes, because 83.83% of the firm's share price is derived from, its expected long-term ree cash flows. No, because only S6.60% of the firm's share price is derived hoe 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 nows No, because the percentage of Flying Cow's expected long-term cash nows is actually 16.17%