Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.00 per share. If the required return on this preferred stock 7.0%, then at what price should the stock sell? a. $57.14 b. 553.40 c. 545.14 d. 561.14 e. $48.00 Liberty Services is now at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000, of which 75% has been depreciated. The firm can sell the used equipment today for $7,200, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax eredit as a result of th sale that will offset expenses from the company's other projects. a, 57,200 b. $5,400 c. 57,750 d. 55.550 e. 56.650 Gupta Corporation is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. However, the FCF is expected to be $85.00 million in Year 5, and the FCF growth rate is expected to be a constant 6.5% beyond that point. The weighted average cost of capital i 12.0\%. What is the horizon (or continuing) value (in millions) at t=5 ? a. 51,451 million b, $1,393 million c. $1,731 million d. $1,545 million e. 51,646 million Taggart Inc's stock has a 50% chance of producing a 35% return, a 30% chance of producing a 9% return, and a 20% chance of producing a 21 return. What is the firm's expected rate of return? Do not round your intermediate ealculations. a. 21.67% b. 16.00% c. 19.00% d. 20.20% e. 23.004