Status: a 544% b. 7.21% C. 5.17% d. 5.72% e. 6.02% QUESTION 40 Atchley Corporation's last free cash flow was S1 55 million The free cash flow growth rate is expected to be constant at 1.5% for 2 years, after which free cash flows are expected to grow at a rate of 8 0% forever. The firms weighted average cost ofcapital WACC) is 12.0% Atchley has $3.5 mall on in short-term investments and $12 million in debt and 1 illion shares outstanding. What is the best estimate of the intrinsic stock price? o a. $28.48 O b. $28.55 O c. $25.05 e d. $27.30 O e. $29.70 QUESTION 41 The free cash flows (in millions) shown below are forecast by Sunin as Inc. If the expected to contimie growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in maillions? weighted average cost ofcapital is 12% and the free cash flows are Free cash flow -520 $44 S47 a $617