A$.$ Your biotech firm plans to buy a new DNA sequencer for $$500,000.$ The seller requires that you pay $20\%$ of the purchase price as a down payment and is willing to finance the remainder by offering a $48-$month loan with equal monthly payments and an interest rate of $0\mathrm{.}5\%$ per month. What is the monthly loan payment?

B$.$ Consider three $10-$year bonds with semi$-$annual coupon payments. One bond has a $10\%$ coupon rate, one has a $5\%$ coupon rate, and one has a $3\%$ coupon rate. If the yield to maturity of each bond is $5\%,$ what is the price of each bond per $$100$ face value? Which bond trades at a premium, which trades at a discount, and which trades at par?

C$.$ You own a car dealership and are trying to decide how to configure the showroom floor. The floor has $2000$ square feet of usable space. You have hired an analyst and asked her to estimate the NPV of putting a particular model on the floor and how much space each model requires:

$\backslash$table$[[$Model$,$NPV$,$Space Requirement $($sq$.$ ft$.)],[$MB$345,$$$3000,200],[$MC$237,5000,250],[$MY$456,4000,240],[$MG$231,1000,150],[$MT$347,6000,450],[$MF$302,4000,200],[$MG$201,1500,150]]$

In addition, the showroom also requires office space. The analyst has estimated that office space generates an NPV of $$14$ per square foot. What models should be displayed on the floor and how many square feet should be devoted to office space?

D$.$ Heavy Metal Corporation is expected to generate the following free cash flows over the next five years:

$\backslash$table$[[$Year$,1,2,3,4,5],[$FCF$,52\mathrm{.}2,68\mathrm{.}7,77\mathrm{.}2,75\mathrm{.}6,80\mathrm{.}5]]$

After then, the free cash flows are expected to grow at the industry average of $4\mathrm{.}1\%$ per year. Using the discounted free cash flow model and a weighted average cost of capital of $14\mathrm{.}9\%$ :

a$.$ Estimate the enterprise value of Heavy Metal.

b$.$ If Heavy Metal has no excess cash, debt of $$306$ million, and $42$ million shares outstanding, estimate its share price.