We present 2 examples of the free cash flow valuation model. In the first problem, we assume that the firm is a mature company so its free cash flows grow at a constant rate. In the second problem, we assume that the firm has a period of nonstant growth Quantitative Problem 1: Assume today is December 31, 2016. Barrington Industries expects that its 2017 after-tax operating income [EBIT(1 - T)] will be $450 million and its 2017 depreciation expense will be $70 million. Barrington's 2017 gross capital expenditures are $110 million and the it for future capital budgeting projects. Using the free cash flow valuation model, what should be the compand your answer to the nearest cent. Do not round intermediate calculations. \$ per share Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations. per share According to the valuation models developed in this chapter, the value that an investor assigns to a share of stock is dependent on the length of the investor plans to hold the stock