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DB8: The intrinsic value of a company is the present value of its expected future free cash flows (FCF) discounted at the weighted average cost of capital (WACC)

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DB8: The intrinsic value of a company is the present value of its expected future free cash flows (FCF) discounted at the weighted average cost of capital (WACC).

How does one  measure a firm’s risk and the rate of return expected by shareholders?

What is ad how is the WACC affected?

All else held equal, could the higher risk increase the WACC?

Would this which reduce or increase the firm’s value?

Please provide numerical examples incorporating the walk-through of the diagram below: