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undefined Morose Otter Hydraulic Manufacturers Inc.'s free cash flows (FCFS) are expected to grow at a constant long-term growth rate (gl) of 11% per year

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Morose Otter Hydraulic Manufacturers Inc.'s free cash flows (FCFS) are expected to grow at a constant long-term growth rate (gl) of 11% per year into the future. Next year, the company expects to generate a free cash flow of $9,500,000. The market value of Morose Otter's outstanding debt and preferred stock is $71,250,000 and $39,583,333, respectively. Morose Otter has 5,250,000 shares of common stock outstanding, and its weighted average cost of capital (WACC) is 17%. Given the preceding information, complete the adjacent table (rounding each value to the nearest whole dollar), and assuming that the firm has not had any nonoperating assets in its balance sheet. Term Value Value of Operations Value of Firm's Common Equity $ Value of Common Stock (per share) $ Oops, a more careful review of Morose Otter's balance sheet actually reports a $2,480,000 portfolio of marketable securities. How does this new information affect the intrinsic value of Morose Otter's common equity (expressed on a per-share basis) assuming no other changes to the Morose Otter financial situation? Review the statements below and select those that accurately describe Morose Otter's financial situation. Check all that apply. The revised intrinsic value of Morose Otter's common stock is $9.52 per share. The greater the market value of the marketable securities portfolio, the smaller the company's total intrinsic (entity) value. The intrinsic value of Morose Otter's common stock increa ses with the inclusion of the company's marketable securities portfolio into the analysis. The intrinsic value of Morose Otter's common stock decreases with the inclusion of the company's marketable securities portfolio into the analysis

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