1. Vaughn Inc.'s free cash flow was just $1.05 million. If the expected long-run growth rate for this company is 6%, if the weighted average cost of capital is 12%, Vaughn has $4 million in short-term investments and $2 million in debt, $1 million in preferred stock, and 1 million shares outstanding, what is the intrinsic stock price?

a. $18.50

b. $15.55

c. $19.55

d. $11.55

2. Wendt Inc. reported $18,780 of total net operating capital, $12,000 of sales, $6,525 of operating costs (including depreciation), and $300 of Interest expense. The weighted average cost of that capital (the WACC) was 9%, and the federal-plus-state income tax rate was 40%. What was Wendt's Economic Value Added (EVA) during the year?

a. $5,509.80

b. $3,784.80

c. $499.80

d. $1,594.80

3. EMC Corp's free cash flow was just $1.47. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The WACC for this company 9%. What is the value of operation?

a. $51.20

b. $77.80

c. $66.04

d. $62.50