The recognition that dividends are dependent on eamings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requiremants, has led to an altemative stock valuation approach, known as the corporate valuation modet. The market value of a firm is equal to the present value of its expected future free cash fows plus the market value its non-operating asiets: Market value of company'h Don-operating assets Ftee canh flows are genersily forecasted for 5 to 10 years, after which it is assumed that the final forecasted free cach flow will grow at spene lung run constant rate. Once the firm reaches its horleon date, when cash flows begin to grow at a constant rate, the equation to calculate the conkinuing walue of the firms operations at that date is: Discount the free cash flows back at the firms weighed average cost of captal to arrive at the velue of the firm todxy, Once the value of the firm's operations are calculated and the value of ponoperating assets are added, then the maket value of dete and preferted are subtracted to arive at the murkot value of equity. The market value of equity is divided by the flumber of commen shares outstanding to estimate the firm' intrinsic per share valoe. assume that the frim has a persod of nanconstant growt. intermediate calculations; Round your answer to the nuarnt cant. 5) pershare neartent cent, Do not round intermesate calcylations. 4 per share