The weighted average cost of capital is 10%, and the FCFs are expected to continue growing at a 5$4 fate after Year 5 . The firm has $26 milfion of marketwalue debt, but it has no preferred stock or any other outstanding claims. There are 19 million shares outstanding. What is the value of the stock price today (Year 0 )? Round your answer to the nearest cent. Do not round intermedate calculations. 1 per share Acrording to the valustion models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the ienoth af time the investor plans to hold the stock. The statement above is Conclusions Analysts use both the discounted dividend model and the free cash flow valuation model when valuing mature, dividend-paying firms; and they generally use the corporate model when valuing divisions and firms that do not pay dividends. In principlo, we should find the same intrinsic value using either model, but differences are often observed. Even if a company is poying steody dividends, much can be ieamed from the corporate model; so anaivsts today use it for all types of valuations. The process of projecting future financial statements can reveal a great deal about a compary's operations and financing needs. Also, such an analysis can 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