Quantitative Problem 2; Hadley Inc, forecasts the year-end free cash fiows (in millions) shown below. The weighted average cost of capital is 12%, and the FOFs are expected to continue growing at a 4% rate aftar Year 5 . The firm has 525 mulion of market-value debt, but it has no preferred stock or any other outstanding claims. There are 20 milion strares outstanding. Also, the firm has zero nanoperating assets. What is the value of the stock price todoy (Year 0)? Round your answor to the nearnst cent. Do not round intermediate caiculations. \$ pershare According to the waluation models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the fencth of time the investor plans to hold the stock. The statement above is conclusions Analyits use both the discounted dividend model and the corporate valuation model when valuing mature, dividend-payng ifrus; and they generally use the corporate model when valuing divisions and firms that do not pay dividends. In principle, we should find the same intrinale value using either model. but differences are often observed. Even if a company is paying stendy dividends, much can be learned from the corporate model; so analyts today use it for oll bypes of yaluatens. The process of projecting future financial statements can reveal a great deal about a company's operations and financing needs, Also, such an analysis can provide insights into octions that might be taken to increase the company's value; and for this reason, it is integral to the planning and forecasting process