35.

Find the intrinsic value of the stock that pays a dividend of $2.65 and has a growth rate of 11% for 4 years then it stabilizes at a long-run growth rate of 3.2%. The stock has a Beta of 1.6, the risk free rate is 1 % and the market return is 7.5%.

	A.	$43.38
	B.	$80.51
	C.	$84.61
	D.	$146.68

36.

1. Use the corporate valuation model to find the intrinsic value of a firm with a long-run growth in FCF of 4.2% and a WACC of 7.7%. The firm has $41 million in debt and preferred stock and has 15 million shares of common stock. The FCF for the first 4 years are (in millions of dollars): -$15,-$3, $22, $32.

   	A.	$22.42
   	B.	$46.13
   	C.	$49.13
   	D.	$56.95

26.

Find the total return (current yield plus the capital gains yield) for a, 3.5% annual coupon bond that we bought for $990, and has a face value of $1,000. Lets assume we sell it one year later for $976.52.

	A.	4.88%
	B.	3.35%
	C.	2.17%
	D.	-2.36%