1. Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.

Year.	1.	2.	3.	4.	5.
FCF	-$22.4	$38.1	$43.7	$51.3	$55.1

The weighted average cost of capital is 12%, and the FCFs are expected to continue growing at a 5% rate after Year 5. The firm has $24 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 19 million shares outstanding. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations. $ _______ per share

2. Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $3.00, and its current price is $87.

a- What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % b - What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

3. Maxwell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 8% per year. If D₀ = $5 and r_s = 16%, what is the value of Maxwell Mining's stock? Round your answer to the nearest cent.

4. You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.50 a share at the end of the year (D₁ = $2.50) and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 4.5%. Justus currently sells for $32.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?) Do not round intermediate calculations. Round your answer to the nearest cent. ______