1. For a DCF valuation, you came up with the following: The estimated total intrinsic value: $675,000 All debt: $250,000 All preferred stock: $100,000 The number of shares (common stock): 20,000 What is the estimated intrinsic stock price?

Group of answer choices $14.96 $15.75 $18.24 $16.25

2. For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of the horizon value is $25,000. You also determine that the short-term investments is worth $10,000. What is the value of the company (i.e., the estimated total intrinsic value)?

Group of answer choices

$135,000

$65,000

$125,000

$105,000

3. For a DCF valuation, you find that the present value of FCFs is $100,000, and the present value of the horizon value is $25,000. You also determine that the short-term investments is worth $10,000. What is the value of the operations?

Group of answer choices

$125,000

$135,000

$65,000

$105,000

4. Thurman Corporation is a fast-growing healthcare company. Its expected cash flows (in millions) for the next four years are: -$20, $80, $100, and $110, respectively. Thurman expects competition and market saturation to reduce its growth rate after Year 4 to 5% for all years in the foreseeable future (hence the projection period or the explicit forecast period is 4 years long). Determine the value of the operations for this company (in millions), assuming a WACC of 12%.

Group of answer choices

$978.82

$1,235.61

$2,785.44

$1,625.78

5. You are provided with the following data:

NOPAT (2020) = $45,000

OpCap (2020) = $23,000

OpCap (2019) = $18,000

What is the FCF in 2020?

Group of answer choices

$30,000

$35.000

$45,000

$40,000

6. On a common stock, you expect the following dividend payments for the next three years: $1.40, $1.75, and $2.00. After the third year, the dividends are expected to stay constant at $2 (i.e., the growth rate of dividends is 0%). The required rate of return on the stock is 14%. What is the estimated intrinsic value per share? (Hint: Solve this problem like a regular multi-stage DDM problem. In the terminal value formula, simply use 0% for the dividend growth rate).

Group of answer choices

$12.92

$13.57

$13.85

$14.26

7. High Tech US Inc. is expected to pay a dividend of $2 per share at the end of year 1(D1), and the dividends are expected to grow at a constant rate of 4 percent forever. If the current price of the stock is $20 per share, calculate the expected return or the cost of equity capital for the firm (Hint: Use the dividend growth approach).

Group of answer choices

12%

14%

8%

10%

8. You found the following data on a company's bond:

Coupon rate: 10%

Yield to maturity: 8%

Tax rate: 20%

Based on this information, what is the after-tax cost of debt for this company?

Group of answer choices

9%

6.4%

8%

10%