Quantitative Problem 2: Hadiey Inc, forecasts the year-end free cash flows (in millions) shown below. The weighted average cost of capital is 9%, and the FoFs are expected to continue growing at a 5% rate after Year 5 . The firm has $25 mililon of market-value debt, but it has no preferred stock oc any other outstanding claims. There are 19 millien shares outstanding. Also, the firm has zero non-operating assets. What is the value of the stock price todioy (Year 0)? Round your answer to the nearest cent: Do not round intermediate calculations. 5 per share According to the valuntion modeis developed in this chapter, the value that an investor assigns to a share of stodk is dependent on the length of time the investor plens to hold the stock. The statement above is Conelusions Anslysts use both the discounted dividend model and the corperate valuation model when valuing mature, dividend-paying firms; and they generally use the corperate model when valuing tivisions and firms that do not pay dividends. In principle, we should find the same intrinsic valut using either model, but differences are often observed. Even it a company is paying stesdy dividends, much can be leamed from the corporate model; so analysts taday use iz for all typos of valuations. The grocess of projecting future financial statements can reveal a great deal about a company's operations and finaneng needs. Also, such an analysis ean 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