31. Estimate the value per share of a privately-held firm based on the following information: total market value (or capitalization value) of a comparable firm = $200,000; net income of a comparable firm = $40,000; number of shares outstanding for the comparable firm = 20,000; net income for the target firm = $15,000; and number of shares outstanding for the target firm = 10,000.

a. $5.00

b. $7.50

c. $10.00

d. $12.50

e. $15.00

32. Estimate a ventures equity valuation cash flow based on the following information: revenue = $24,475, net income = $6,372; depreciation = $4,600; change in net operating working capital = $2,415 (a source of cash); capital expenditures = $6,900; and new debt issues = $1,000.

a. $6,487

b. $7,487

c. $4,487

d. $3,787

e. $5,787

33. Estimate a ventures terminal value based on the following information: current years net sales = $500,000; next years expected cash flow = $16,000; constant future growth rate = 4%; and venture investors required rate of return = 20%.

a. $156,846

b. $285,714

c. $200,000

d. $150,000

e. $100,000

34. Which of the following is not a component in determining the cost of debt?

a. default risk premium

b. liquidity premium

c. maturity risk premium

d. inflation premium

e. None- all of these are components of cost of debt