1. A firm is expected to pay a $1.80 per share dividend at the end of the year (that is D1=$1.80). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock is 10%. What is the stock's current value per share?

2. A start up company would like to raise money. It is currently putting all of its net income back into the company, and things are so tight it has negative free cash flow (that is, it is in a 'cash burn' situation). How might you value this company?

3.A technology company is expected to generate $25 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. The company has no debt or preferred stock, its WACC is 10% and it has zero non operating assets. If the company has 40 million shares of stock outstanding, what is the stock's value per share?

4. A stock is expected to pay a dividend of $2.75 at the end of the year (D1 = $2.75). and it will grow at a constant rate of 5% per year. If its required return is 15%, what is the stock's expected price 4 years from today?

5.

For a firm, analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 5% rate. The company's WACC is 11%.

What is the company's horizon (or 'continuing' value). (find the value of all free cash flows beyond year 3 discounted back to year 3).

6.

For a firm, analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 5% rate. The company's WACC is 11%.

If the company has no non-operating assets, what is the firm's market value today?

7.

For a firm, analysts project the following free cash flows during the next 3 years, after which FCF is expected to grow at a constant 5% rate. The company's WACC is 11%.

Now suppose the same company has $112.60 million of debt and 25 million shares of stock outstanding. What is your estimate of the CURRENT price per share.

8.

A company paid a $2.00 Dividend today (D0). If the Dividend is expected to grow at 5% per year for the next 5 years, what will its dividend be in 3 years. The appropriate discount rate is 12%.

9. What is the price of a stock today if it pays a Dividend TODAY of $2. Its growth rate is 5%, and its market return is 12%