1. (Chapter 2) Activision Blizzard, Inc. has a stock price of $77.12 per share and 784 million outstanding shares. Based on that information, the market cap for Blizzard is:
2. 784 million
3. 77.12 billion
4. 60.46 billion
5. 84.77 billion

2. (Chapter 3) Suppose Firm A has an interest expense of $500,000, tax expense of $3,000,000, total capital expenditure of $ 4,000,000, and cash provided by operation of $9,000,000. What is Firm As free cash flow (FCF)?

1. 10,000,000
2. 5,500,000
3. 10,500,000
4. 4,500,000

3. (Chapter 5) The definition of perpetuity is?

1. Amount to which an investment will grow after earning interest.
2. Value today of a future cash flow.
3. Present value of $1 of future cash flow.
4. A stream of level cash payments that never ends.

4. (Chapter 3) Suppose the federal income tax will be paid based on the information below: 0-10,000 for 10%, 10,000-40,000 for 12%, 40,000-100,000 for 20% 100,000-200,000 for 22% If your annual salary is $160,000, how much you should pay for federal income tax?

1. 21,000
2. 29,800
3. 35,200
4. 17,500

5. (Chapter 3) Suppose your financial advisor told you the information about Lemon, Inc. below: Total Asset: 5 billion, current asset:1 billion, account receivable: 500 million, long-term liability: 3 billion, current liability:600 million. What is the working capital of Watermelon, Inc.?

1. 2 billion
2. 500 million
3. 5 billion
4. 400 million