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Which of the following is a determinant of a firms free cash flows? Cost of equity Firms business risk Required investments in operating capital The

Which of the following is a determinant of a firms free cash flows?

Cost of equity

Firms business risk

Required investments in operating capital

The following table presents some of the current years financial data for the Green Zebra Media Company. Complete the table by computing Green Zebras free cash flows and fundamental value (rounded to the nearest whole dollar) based solely on this years information:

Variable

Value

Sales revenue $300,000
Operating costs and taxes $55,000
Required investments in operating capital $25,000
Weighted average cost of capital 6.50%
Annual free cash flow

Fundamental value

Assuming all other things being equal, if Green Zebras costs of debt increases, the firms will

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