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The following table presents some of the current years financial data for the Happy Giraffe Construction Company. Complete the table by computing Happy Giraffes free

The following table presents some of the current years financial data for the Happy Giraffe Construction Company. Complete the table by computing Happy Giraffes free cash flows and fundamental value (rounded to the nearest whole dollar) based solely on this years information:

Variable

Value

Sales revenue $300,000
Operating costs and taxes $55,000
Required investments in operating capital $25,000
Weighted average cost of capital 6.50%
Annual free cash flow

Fundamental value

Assuming all other things being equal, if Happy Giraffes sales revenues increase, the firms ( fundamental value, weighted average cost of capital) will (increase, decrease) .

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