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Which of the following correctly represents a firm's fundamental value? The present value of the firm's expected free cash flows. O The difference between the

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Which of the following correctly represents a firm's fundamental value? The present value of the firm's expected free cash flows. O The difference between the firm's free cash flows and its costs. The ratio of the firm's free cash flows and its weighted average cost of capital The following table presents some of the current year's financial data for the Fantasy Aircraft Company. Complete the table by computing Fantasy Alreraft Company's free cash nows and fundamental value (rounded to the nearest whole dollar) based solely on this year's information Variable Sales revenue Operating costs and taxes Required investments in operating capital Weighted average cost of capital Annual free cash flow Fundamental value Value $850,000 $130,000 $150,000 12.50% operating costs and taxes fundamental value Assuming all other things being equal, if Fantasy Aircraft Company's costs of equity decreases, the firm's

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