1. Firm F has 3 million shares outstanding, of which you own 0.5%. The executives decide to raise money by issuing an additional 500,000 shares. Based on the Preemptive Right, how many shares can you choose to purchase at the issue price?
   • 3500 shares

• • 5000 shares

• • 3000 shares

• • 2500 shares

2. What is the intrinsic value of a single share of stock given the information below?

• Cash: 20
• CapEx: 90
• FCFF (today): 60
• Fixed Assets: 300
• Net Debt: 200
• WACC: 7%
• cost of debt: 4%
• # of shares: 15
• growth rate: 2%
• tax rate: 27%

$64.13
		$68.27
		$62.49
		$66.67