Misra Inc. forecasts a free cash flow of $95 million in Year 3 , i.e., at t=3, and it expects FCF to grow at a constant rate of 5.5% thereafter. If the weighted average cost of capital (WACC) is 10.0% and the cost of equity is 14.0%, then what is the horizon, or continuing, value in millions at t=3 ? a. 52,001 million b. 52,227 million c. 51,822 million d. \$2.111 million e. 52.322 milion Based on the corporate valuation model, Wang Inc's total corporate value is $920 million. Its balance sheet shows $90 million notes payable, $180 million of long-term debt, $40 million of common stock (par plus paid-in-capital), and $160 million of retained earnings. What is the best estimate for the firm's value of equity (in millions)? a. 5830 million b. 5650 million c. 5740 milion d. 5760 million e. 1690 million Rebello's preferred stock pays a dividend of \$1.25 per quarter, and it sells for $60.00 per share. What is its effective annual (not nominal) rate of return? a. 4.1796 b. 8.51% c. 8.60% d. 9.43% e. 8.33\% Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firn's WACc. The Fed's action did not affect the forecasted cash flows. By how much did the thange in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which ease it should be rejected. b. $13.29 c. $2350 d. 524.68 e. 51432