Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company's weighted average cost of capital is 16%. a. What is the terminal, or horizon, value of operations? (Hint: Find the value of all free cash flows beyond Year 2 discounted back to Year 2.) Round your answer to the nearest cent. b. Calculate the value of Kendra's operations. Do not round intermediate calculations. Round your answer to the nearest cent. Free Cash Flow Valuation Dozier Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFS) during the next 3 years, after which FCF is expected to grow at a constant 7% rate. Dozier's weighted average cost of capital is WACC = 18%. 1 Year 2 3 Free cash flow (millions of dollars) -$20 $30 $40 a. What is Dozier's horizon value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. $ million b. What is the current value of operations for Dozier? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to two decimal places. $ million c. Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the intrinsic price per share? Do not round intermediate calculations. Round your answer to the nearest cent. $ per share Preferred Stock Rate of Return What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 10% of par, and a current market price of (a) $31, (b) $40, (c) $50, and (d) $67 (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answers to two decimal places. a. b. % % % C. d. % Value of Operations: Constant FCF Growth EMC Corporation's current free cash flow of $530,000 and is expected to grow at a constant rate of 4.5%. The weighted average cost of capital is WACC = 14%. Calculate EMC's estimated value of operations. Do not round intermediate calculations. Round your answer to the nearest dollar.