1. A company is expected to generate free cash flows of $ 75 million next year which is expected to grow at a constant rate of 5% per year. The company has $100 million in debt and $50 million in preferred shares and its weighted average cost of capital is 10%. The company has 30 million shares outstanding. What is the price per share?

a. $18.96

b. $50 c. $45 d. $55 e. Cannot be determined from the information

4. The process of converting distant cash flows to their present value is called A. Amortizing B. Discounting C. Compounding D. Free Cash Flow Estimation E. Averaging

6. A company has just paid a dividend of $1.75 per share. The dividends are expected to grow at an annual growth rate of 20% for the next two years. Beyond that, the dividends are expected to grow at a constant rate of 4% forever. The required return on equity is 12%. What is the estimated price per share? A. $42.65 B. 530.00 C. $26.25 D. $22.75 E. Cannot be determined from the information provided