1. Your firm is considering a project which will cost $22 million after-tax today and is expected to generate after-tax cash flows of $9 million per year at the end of the next 4 years. If the company waits for 2 years, the project will cost $24 million after-tax and there is a 90% chance that the project will generate $11 million per year for four years and a 10% chance that the project will generate $8 million per year for 4 years. Assume all cash flows are discounted at 10%. Estimate the value of the timing option.

Group of answer choices

$1.12 million

$1.74 million

$1.67 million

$1.88 million

$1.36 million

2. Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $25.00 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D₁?

Group of answer choices

$0.90

$1.12

$1.33

$1.06

$1.22

3.Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $1,425 million. Its balance sheet shows $110 million in notes payable, $90 million in long-term debt, $20 million in preferred stock, $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of its stock price per share?

Group of answer choices

$48.20

$58.32

$36.63

$60.25

$45.31