1.MMP Incorporated generated FCF in the most recently completed year of $700,000. We expect FCF to grow by 10% in year 1, 8% in year 2 and 7% in year three.Beginning in year four, FCF will begin to grow at a constant rate of 6%.The required rate of return on this investment is 15%.MMP has debt of $2,000,000, preferred stock of $1,000,000 and 400,000 shares of common stock outstanding.What is each share of common worth today?

2.At year end, Malta Company balance sheet showed total assets of $60 million, total liabilities of $45 million, and 1,000,000 shares of common stock outstanding. Next year, Malta is projecting that it will have net income of $1.5 million. If the average P/E multiple in Maltas industry is 15, (and this is an average stock) what should be the price of Maltas stock?

3.A $1,000 par value bond paying a 7% semi-annual coupon with 19 years to maturity is priced at $965.This bond is callable in 11 years at a price of $1,070.

What is this bonds YTC?

4.You invest $200,000 today at a rate of 5.6%.You take $1,800 a month out of your account and spend it.How much will you have in your account in 10 years