1. Given the following information, compute the estimated value per share (all values are in millions):

Present value of all future cash flows: $33

Midyear adjustment factor: $1.2

Value of debt: $11.5

Value of capitalized operating leases: $5.2

Number of shares outstanding: 2.5

2. Use the following information to find the NOPLAT in year t+1 that yields the continuing value expressed below (Round to the nearest million):

NOPLAT growth rate = 1.5%

Return on new invested capital = 9%

Weighted average cost of capital = 6.8%

Continuing value = $1,750 million

3. Given the following data, what is the enterprise value of the company (Round to the nearest million)?

Free Cash Flow in year 1: $60 million

Free Cash Flow in year 2: $53 million

Continuing Value at year 2: $291.6 million

WACC: 8%

RONIC: 11.5%

4. Which of the following valuation methods use(s) the weighted average cost of capital (WACC) as the discount factor?

The economic profit model.

The adjusted present value model.

The discounted cash flow model.

None of the above.

5. Assume an operating tax rate of 20 percent. Information and answers are given in thousands:

Information from Company X's forecast 2022 Income Statement:

Revenues: $ 120,600

Compensation and benefits: $ (57,575)

Manufacturing expenses: $ (32,323)

Delivery expenses: $ (8,722)

Depreciation: $ (2,056)

Amoritization, capitalized IT $ (1,028)

Other expenses $ (7,151)