Ch 08: Assignment - Basic Stock Valuation is expected to grow at a rate of 16% over the following two years (FGF2 and FCF). After the third year, however, the Panda's weighted average cost of capital (WACC) is 14%, complete the following table and compute the current aceuticals Inc. is expected to generate a free cash flow (FCF) of $210,000 this year, and the FCF FCs are expected to grow at a constant rate of 7% per year, which will last forever (FCF4-"). If Purple value of Purple Panda's operations. Round all dollar amounts to the nearest whole dollar, and assume that the firm assets in its balance sheet and that all FCFs occur at the end of each year. CFt $210,000 PV(FCF.) FCF1 FCP FCPs FCF4 Purple Panda's debt has a market value of $2,608,377, and Purple Panda has no preferred stock in its capital structure. If Purple Panda has 450,000 shares of common stock outstanding, then the total value of the company's and the estimated intrinsic value per share of its common stock is The end of Year 3 differentiates Purple Panda's short-term and long-term FCFs. . Professionally-conducted studies have shown that more than 80% of the average company's share price is attributable to long-term-rather than short-term-cash flows. Yes, because 83.83% of the firm's share price is derived from its expected long-term free cash flows. Yes, because 73.77% of the firm's share price is derived from its expected long-term free cash flows. O