Clint Bartion inherited some moocy that Steve Rogern had left for him. A broker has offered to sell Clint an anntiity that pays $2,600 at the end of each year for 20 years. Climt could eam 5% on his money in other investments with equal risk. Clint has a sharp eye for ifvestments of this natire, what it the most be thould pay for the ammity? a. 524,949.35 b. 538,55808 c. 532,401.75 d. 539,530.13 e. 534,34585 Wryne Limterjrues is planning its operations for next year, and Mr. Lucius Fox, the CEO, wants you to forecast the firm's additional funds noeded (AFN). Data for use in your forecast are shown below, Based on the AFN equation, what is the AFN for the coming year? a. 55,760 Leacorp hat eyperimend some prean profitablity in recent years and is expected to pay a dividend of D1=$1.25 per share at the end of the year. Acoerding to ler Lakhor, the firm's chairman and CEO, the dividend is expected to grow at a conttant rate of 6 .00\% is pet year in the future. The compary/s bra is 1.55 , the maket nak premium is 5.50%, and the nsk-free rate is 4.00%. What is the company's current and jice? De not round ittermediate calculations. a. 519.16 b 5155 c. 31648 d. 52315 e 521 o? Starks Industries recently declared a 7-fon-2 stock split. Prior to the split, the stock sold for $85 per share. If the firm's total market value is unchanped by the split, what will the stock price be following the split? a. 52841 b. $73.56 c. 5796 d. 52429 c. $2234 After invecting heavily on new technologies to identify Bose-Einstein Bridges, Starks Industries forecasts a negative free cash flow for the coming year, FCF1=$10 million, but it expects positive numbers thereafter, with FCF2=$11 million. After Year 2 , FCF is expected to grow at a constant rate of 4% forever. Assume the Starks has zero non-operating assets. If the weighted average cost of capital is 14.0%, what is the firm's total corporate value, in millions? Do not round intermediate calculations a. 510155 b. 587,72 c. $92.11 d. $83.33 e. $96.71 Whyne Finternoses CBO. Mr. twerus Fox, made the following data avalable. If it follows the tesidual divedend model, what is its forecasted divikend payout ratio? a. cos92% b. 55.20% c. $6.2776 d. 53,5996 e. 412256 Acme Comp. has experienced signficant rates of growth in the past fow years. This year however, the firm has seen its growth normalire and settle imto a more constant rate. A share of the firm's common stock just paid a dividend of $1.00. If the expected longnun growth rate for this stock is 5.4%k, and if investors' required rate of return is 13.7%, then what is the stock price? a. 51270 b. 51232 c. $1575