FC Quantitative Problem 2: Hadley Inc. forecasts the year and free cash flows (in millions) shown below. Year 1 2 3 -$22.52 $35.7 $43.6 551.8 $55.7 The weighted average cost of capital is 9%, and the FC are expected to continue growing at 4% rate after years. The firm has $24 million of market value debt, but it has no preferred stock or any other outstanding claims. There are 20 million shares outstanding. What is the value of the stock price today (Year O)? Do not round intermediate calculations. Round your answer to the nearest cent. per share According to the valuation model developed in this chapter, the value that an investor sy to a share of stock is dependent on the length of time the investor plans hold the stock The statement above Conclusione Analysts use both the discountad dividend model and the tree castlow valuation model when van mature, dividend paying forms and they generally use the corporate model when valuing divisions and firms that do not by dividends. In principe we should find the same intrinsic value in the model but differences are often observed Even if a company paying steady dividends, much can be lamed from the corporate model analysts today use it for all types of auton. The process of projecting future financial statements can reveal a great deal out a company's operations and financing needs to such an analysis can provide insights into actions that might be taken to increase the company's value and for this reason, it is integral to the planning and forecasting process