1- Suppose the expected growth rate of GDP for an economy is 5% and the expected inflation rate is 2%. In that case, the following perpetual growth rates are not a realistic assumption for a healthy company in the economy. a) 1.5% b) 3% c) 3.5% d) 4.8% Answer A. 2. An analysis of company Q provided the following information: Operating cost of capital = 8.1% NOA0 $1,688,324 NOPAT = $328,801 Sum of present value of forecasted free cash flow (FCF) = $912,613 Sum of the present value of forecasted abnormal operating income growth (AOIG) to period 1 ($1,200) Present value of ROPI continuing value = $962,508 Present value of AOIG continuing value to period 1 = $3,980 The estimated value of Company Q using the abnormal operating income model. a) $331,581. b) $1,691,104. c) $3,217,918. d) $4,093,593. Answer D. 3. Company P has the following data at the end of the year on December 31, 2021: FEAT $75.6 million Beginning NFL $1,291 million Ending NFL $1,569 million Calculate Company P's cost of debt capital, FD, assuming the future tax rate is 21.0 percent. a) 4.74% b) 5.29% c) 6.69% d) 8.59% Answer C.