1.

A company is expected to have free cash flows of $1.85 million next year. The weighted average cost of capital is WACC = 13%, and the expected constant growth rate is g = 6%. The company has $1.25 million in short-term investments, $2.25 million in debt, and 1.5 million shares. What is the stock's current intrinsic stock price?

		$17.58
		$18.02
		$16.29
		$17.78
		$16.95

2.

Burke Tires just paid a dividend of D0 = $1.45. Analysts expect the company's dividend to grow by 25% this year, by 20% in Year 2, grow by 10% in Year 3 and at a constant rate of 6% in Year 4 and thereafter. The required return on this low-risk stock is 10.00%. What is the best estimate of the stock's current market value?

		$52.88
		$39.56
		$41.27
		$43.34
		$45.89

3.

A stock just paid a dividend of D0 = $1.33. The required rate of return is rs = 11%, and the constant growth rate is g = 5.5%. What is the current stock price?

		$24.75
		$23.76
		$25.11
		$24.32
		$25.51

4. Meacham Enterprises bonds currently sell for $1,100 and have a par value of $1,000. They pay an $85 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,075. What is their yield to call (YTC)?

		9.88%
		8.71%
		8.08%
		7.84%
		7.33%

5.

Haswell Enterprises bonds have a 25-year maturity, a 8.00% semiannual coupon, and a par value of $1,000. The going interest rate is 7.50%, based on semiannual compounding. What is the bond price?

		$1,056.09
		$1,080.29
		$1,118.31
		$1,125.51
		$1,184.14