41: A firm's expected free cash flow in 2013 (FCF₁) was $180 million, and expect its free cash flow has a constant growth rate at 5%. If the weight average cost of capital (WACC) for the firm is 10%, what's the estimated value for the firm's operating assets?

$1,800 millions

$3,600 millions

$3,780 millions

$3,980 millions

42: A company is estimating its optimal capital structure. Now the company has a capital structure that consists of 20% debt and 80% equity, based on market values (debt to equity D/S ratio is 0.25). The risk-free rate (r_RF) is 5% and the market risk premium (r_M - r_RF) is 6%. Currently the company's cost of equity, which is based on the CAPM, is 14% and its tax rate is 20%. Find the firm's current leveraged beta using the CAPM

1.0

1.5

1.6

1.7

43: Based on the information from Question 42, find the firm's unleveraged beta using the Hamada Equation

0.95

1.0

1.25

1.35

44: Based on the information from Question 42 and 43, what would be the company's new leveraged beta if it were to change its capital structure to 50% debt and 50% equity (D/S=1.0) using the Hamada Equation?

1.25

1.35

1.95

2.25

45: Based on the information from Question 42 ~ 44, what would be the company's new cost of equity if it were to change its capital structure to 50% debt and 50% equity (D/S =1.0) using the CAPM?

13.8%

15.6%

16.8%

18.5%

46: An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage.As one part of your analysis, the analyst wants to determine the firm's cash conversion cycle.Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm's inventory conversion cycle.

18 days

70 days

75 days

80 days

47: Based on information from Question 46, Calculate the firm's receivables collection period.

60 days

70 days

80 days

90 days

48: Based on information from Question 46, Calculate the firm's payables deferral period.

18 days

36 days

75 days

90 days

49: Based on information from Question 46~48, Calculate the firm's cash conversion cycle (CCC).

122 days

129 days

147 days

128 days

50: Which of the following methods can NOT be used to improve the firm's cash conversion cycle?

Decrease the firm's inventory conversion cycle.

Decrease the firm's receivables collection period.

Decrease the firm's payables deferral period.

Increase the firm's payables deferral period.