You are a bright-eyedanalyst at Google. Your boss explains that your team has the option to choose between some MER (Mutually Exclusive & Repeatable)projects. Project WeTube has an inital outlay of 1200, and Project MoogleMaps has an inital outlay of 800. WeTube offers cashflows of 1000 for the first two years, and 1400 for the next two years. Meanwhile, MoogleMaps looks rather promising with cashflows of 1200 for the next 3years! The required rate of return WeTube is 13.4% and MoogleMaps RRR is15%.

Based off of the previous infomation, calculate the equivalent annual annuity for Project WeTube!

• 850M
• 768M
• 792M
• 827M

Assume you've forecasted and calculated the following Free Cash Flows to the Firm.

Year

FCFF

1 : $7,389

2: $8,993

3: $9,744

You have also made the assumption that after year 3, the company will grow by a rate of 2.8%.

Further suppose that the company has a current share price of $88.99 and a total of 4.5 million shares outstanding. The company currently has debt with a total face value of $891 million. These outstanding bonds are currently priced to yield 8.9% while quoting at 97% of total face value. The current t-bill rate is 1.1% and the market risk premium is 5.3%. We've estimated the to be 1.84. The marginal tax rate is 21%. Given this information, what is the value of this firm?

• $167,360
• $167,016
• $156,307
• $189,971

Assume you've forecasted and calculated the following Free Cash Flows to Equity Holders.

Year

FCFE

1

$1989.13

2

$2022.29

3

$2313.89

You have also made the assumption that after year 4, the cash flows to equity holders will grow at a constant rate of 5% per year indefinitely.The company recently paid an annual dividend of $6.89and has a current share price of $122.The company also expects that dividends will grow at a constant rate of 3.13% per year indefinitely.Given this information, what is the value of this firm's equity?

• $48,918
• $52,822
• $45,707
• $50,142

You are interested in valuing your favorite ice cream shop, Salt & Straw. S&S currently has an EBIT of $4.79 million, Sales of $8.615 million,NI of $2.4 million, annual depreciation of $.9 million, andamortization of $.5 million. You have determined the current average EBITDA multiple of comparable ice cream shops is 3.9x.

What is the value of Salt & Straw?

• $28.1 million
• $24.1 million
• $22.2 million
• $13.2 million