1- Suppose a company's most recent free cash flow (i.e., FCF0) was $100 million and is expected to grow at a constant rate of 5 percent.If the company's weighted average cost of capital is 10 percent, what is the current value of operations?

(If the answer is $1,234 million, then enter 1234 without dollar sign, comma, and million.)

2- ABC Inc. is considering a project that has the following cash flows.What is the project's discounted payback period if the WACC is 15%?

Year:0123

Cash flows:-$600$400$300$500

3- Which of the following isnotalways a way to increase the value of a company?

Select one:

a.Increase the growth rate of sales.

b.Increase the operating profitability (NOPAT/Sales).

c.Decrease the capital requirement (Capital/Sales).

d.Decrease the weighted average cost of capital.