QUESTION 36 6 points Save Answer On December 31, 2006, a stock analyst has forecasted that Hart Enterprises should generate free cash flows of $1,460 in 2007 and 3,000 in 2008 and 4,500 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 11%. Hart Enterprises has Notes Payable and Long-term Debt of $10,000 and no Preferred Stock. Hart Enterprises has 10,000 shares of common stock outstanding. What is the total value of Hart Enterprises (6 points)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I y S Paragraph Arial 10pt Tx 0 > ABC [+ T 9 92 OD {:} Ra Ky + QUESTION 37 4 points Save Answer What is the value, Po, of a share of Hart Enterprise's stock (4 points)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I y Paragraph Arial ch 10pt > iii : !!! A v Ix % OG Q ... 6 ABC ilil IIII X2 X2 > lla . T Ii +] T 9 22 x # ll - + Ra DI A EX + E | {i} ky QUESTION 38 3 points Save Answer If Hart Enterprises reduces its WACC to 10%, will the value of Hart Enterprises increase or decrease? Explain your answer (3 points)? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Y S Paragraph Arial 10pt A iii Tx AL Q ... 5 ABC = = = E IIII xX2 u > Tic T 19 12 lili -- 19- 11 {:} RA Ky +