1- there's 2 pizza restaurants, that have the same assets and generate the same CF (Cash Flows). the 1st restaurant is financed entirely with equity, with 2 million shares outstanding that trade for a price of $34 per share. The 2nd restaurant has 3 million shares outstanding and $14 million in debt at an interest rate of 5%.

According to MM Proposition I, the stock price for the 2nd restaurant is closest to ________?

2- Presume that when the stock market rises by 4%, we expect Sears to to increase by 7%. and if the market fell 2% today, what is the expected perfomance?

Assume CAPM is true. Also assume that when the stock market rises by 2%, we expect Apple to rise by 5%. If the market fell 3% today, what is the expected Apple performance?