1. Chewy Chocolate company's stock is currently selling at $ 200 per share . Its current FCFE ( Free Cash Flow to Equity ) is $ 8.00 share , and its equity RAOCC is 6.00 % . If Chewy FCFE ceased to grow but remained at $ 8.00 for an indefinitely long period of time , then Chewy's current stock price should be about_____ and the Present Value of its Growth Opportunities would be about ____

A. $ 200 ; $ 0.00

B. $ 133 ; $ 67.00

C. $ 150 ; $ 50.00

D. $ 0 ; $ 200.00

2. Suppose you have the following information for the Vanilla Bean company for 2021 :

Required Return on Equity of 10.00 % .

Tax Rate of 30 % .

Cost of Debt of 7.00 %

Book Value of Equity of $ 15 billion .

Long - Term Debt of $ 5 billion .

The firm's Risk Adjusted Opportunity Cost of Capital ( RAOCC ) is

A. 14.00 %

B. 13.50 %

C. 8.75 %

D. 8.50 %

. Vanilla Bean company also reports for 2021 :

Operating Profit of $ 4 billion .

Taxes of $ 120 million

Vanilla Bean's NOPAT is ______ , and its ROIC is______.

A. $ 2 billion ; 20 %

B. $ 3.88billion ; 19.40 %

C. $ 1.5 billion ; 24.50 %

D. $ 2 billion ; 8.75 % .

. The Vanilla Bean company's Economic Value Added ( EVA ) is

A. $ 5.34 billion

B. $ 3.88 billion

C. $ 2.12 billion

D. $ 4.08 billion .