1 point Fox News parent company, News Corp. is expected to grow its free cash flow to equity (FCFTE) by 10% for the next two years. After which the FCFTE is expected to grow by 5% for the next three years. After this five year period, the FCFTE is expected to grow by only 2% per year. News Corp's cost of equity capital is 12% and last year, the FCFTE for News Corp. was $2 on a per share basis. The stock price for News Corp should trade at: $37.56 $8.99 $16.21 $25.20 $28.57 - POM Don You are planning your dream vacation to Europe for which you need to save $32,000. The market interest rate is currently 10.70 percent. You are planning to save $380 per month until you reach your goal. How many years will it be until you reach your goal to enjoy your vacation: 7.02 years 4.85 years 6.01 years 5.26 years 5.51 years Previous Next Your firm is considering a capital budgeting decision that will require an initial investment of $8.2 million. The free cash flow produced by this project will be $1.93 million per year for the next 6 years. The firm currently issues bonds with a yield to maturity of 5.67%. The cost of equity capital for the firm is 11.31%. The firm has a debt to equity ratio of 0.62 and currently faces a tax rate of 40 percent. The NPV for this project is: $671.783 $418.860 $645,945 $553.667 $581.350 Next Previous