Answer the Following Short Answer Questions.

If a company generated $30 million in Free Cash Flow last year then what is the firm's value if its cost of capital is 12% and growth is expected to equal 4% annually for the foreseeable future? Compute the share price using the Dividend Discount Model and a 10% discount rate: D. = $2.00, dividend growth = 4% b. Du = $4, dividend growth = 5% c. D = $2.00 a. Which of the following is worth the most today and why? a. $150 per year forever starting today - discount rate of 9% b. $600/year for 5 years with first payment received 3 years from now- rate of 10% C. Pay $1,000 today and receive $350/year for 10 years - discount rate 6% d $6,000 lump sum to be paid out in 10 years - discount rate 15%