Question: Question 7 (1 point) A project has earnings before interest and taxes of $100M. The depreciation expense is $20M. The project has capital expenditure (Capex)

Question 7 (1 point) A project has earnings

Question 7 (1 point) A project has earnings before interest and taxes of $100M. The depreciation expense is $20M. The project has capital expenditure (Capex) of $40 M, and an increase in net working capital of $20M. The tax rate is 40%. What is the free cash flow (FCF) of the project? $20M $90M $40M $30M Question 8 (1 point) Stock A has a standard deviation of 5% and expected return of 10%. Stock B has a standard deviation of 10% and expected return of 15%. Suppose, we create a portfolio with 50% weight in stock A and 50% weight in Stock B. The portfolio has a standard deviation of 6.614%. What is the correlation between stock A and stock B. 0 1 -1 0.5

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