1. You work as an analyst at ABC. The company's share is traded on the stock exchange with 100,000 shares (number of total traded shares) and on that day its price is 80 euros. You have at your disposal the estimates for the evolution of the Free Cash Flows of the Company for the next 5 years.

	T0	T1	T2	T3	T4	T5
Free Cash Flows		690.000	833.000	704.000	921.000	990.000

Consider that: Free cash flows are expected to show a growth trend of 1% after the fifth year. The 10% discount rate is given. Is the company's share in the negotiable market overvalued or undervalued? It compares the market price with the theoretical price, according to the financial condition of the company.

2. The CFO of the company wishes to calculate the weighted average capital cost of the business. The capital structure consists of 30% loan funds and 70% common shares, and is expected to remain stable. The marginal tax rate of the company is 26%, while for the 10-year bonds of the Greek state they give 6%. The cost of pre-tax loan capital of the company amounts to 11%. The financial services consulting company with which the company cooperates has handed over to its financial director its estimates for the market. Specifically, it estimates that the expected market return will rise to 10%, while the beta rate of HYZ is 1.2. Calculate the average weighted capital cost of the business.