Quantitative Problem 1: Assume today is December 31, 2019. Barringten Industries expects that its 2020 aher-tax operating income [EBrT(1 - T)] will be 5430 million and its 2020 depreciation expense wil be $65 million. Barrington's 2020 gross capital expenditures are expected to be $120 million and the change in ins net operating working capital for 2020 will be $25 milion. The firm's free cash flow is expected to grow at a constant rate of 4,5% annually. Assume that its froe cash flow occurs at the end of each year. The firm's welghted average cost of capital is 8.3W; the market value of the company's debt is $2.45 bilion; and the company has 180 millign shares of common stock outstanding. The firm has no preferred stock on its balance sheet and has no plans to use it for future capital budgeting projects. Aso, the firm has zero nen-cperating assets. Using the corporate valuation model, what should be the company's stock price todoy (December 31, 2019)? Do not round intermediate calculations, Round your answer to the nearest cent. s. per share Quantitative Problem 2: Hadley inc. forecasts the vear-end free cash flows (in millions) shown below. The weighted averape cost of capital is 9%, and the FCFs are expected to continue growing at a 5% rate after Year 5 . The firm has $26 millign of market-value debc, but it has no preferred stock of any other outstanding claims. There are 20 milion shares outstanding. Also, the fim has zero non-eperating ossets. What is the value of the stock price today (Year og? Rownd your answer to the nearest cent, Oo not round intermediate caloulations. s per share According to the valuation models developed in this chapter, the value that an imvestor assigns to a share of stock is dependent on the length of time the investor pians to hold the stock: The statement above is Conclusions Anairsts use both the discounted dividend model and the corporate valuation model when valing mature, dividend-payme firms; and they generally use the corporate model when valuing ovisips and firms that do not pary dividends. In prinople, we should find the seme intrinsic value using eather model, but differences are enten observed. Even of a company is paying seady dividends, much can be learned trem the corporme model; wo analysts today use in for ail types of veluatisna. The process of profecting future increase the company's value; and for this reason, it is integral to the planning and forecasting prosess