On December 31, 2006, foretasted that Hart Enterprises chould generate free cash flows of $1,500 in 2007 and 2,500 in 2008 and 3,000 in 2009. Thereafter, free cash flow for Hart Enterprises is expected to grow at an annual rate of 7%. Hart Enterprises has a weighted average cost of capital (WACC) of 10%. Hart Enterprises has Notes Payable and Long-term Debt of $10,000 and no Preferred Stock. Hart Enterprises has 15,000 shares of common stock outstanding.

What is the total value of Hart Enterprises?

What is the value, P₀, of a share of Hart Enterprises stock?

If Hart Enterprises increases its WACC to 11%, will the value of Hart Enterprises increase or decrease?