1. Big Bird has securities that have a beta of 2.55. If the market return is expected to be 7.45 percent and the risk-free rate is 2.35 percent, what is Big Bird's required return?

2. Supergirl has called upon your services to calculate the expected return given the five economic scenarios and the possible return for this scenario:

Economic Projections	Probability	Return
Supersonic Growth	0.10	45%
Fast growth	0.20	25%
Intermediate growth	0.35	10%
Slow growth	0.20	3%
Recession	0.15	-25%

3. Hogwarts Inc. recently paid a dividend (D₀) of $2.50. Ant Man, the CFO for Hogwarts Inc. expects to have non-constant growth of 12% for 2 years followed by a constant rate of 3% thereafter. What will be Hogwarts required rate/return if 12%.

Calculate what Hogwarts intrinsic value is - P₀ (P-hat subscript 0)?

(Hint: you first need to calculate up to year 2, and then calculate the horizon value that starts at the end of year 2 - two-step process) (From there, you calculate the NPV by inputting the CF's - not that many CF's)

4. The Justice League has an expectation that it will produce $50 million in free cash flow next year, and their FCF is expected to grow at a constant rate of 3% per year indefinitely. The Justice League has no preferred stock or debt, and its WACC is 8%.

If The Justice League has 20 million shares of stock outstanding, what is the stock's value per share?

(Hint: you first need to calculate the value of the firm and then use that amount to get your "Equity value per share")