*****Please answer all!****

1. You have gathered the following information for a company:

Income Statement Year Ended June 30, 2022

Net Income = 12

Dividend = 0

Balance Sheet As of June 30, 2021

Total Assets = 100

Total Shareholder's Equity = 50

You expect this company to maintain constant return on equity, payout ratio, and mixture of debt and equity in perpetuity. Based on this information, what book value of equity would you expect this company to report on June 30, 2023?

A. Between 50 and 60

B. Between 60 and 70

C. Between 70 and 80

D. Between 80 and 100

E. More than 100

2. You have gathered the following information for a company:

Income Statement Year Ended June 30, 2022

Net Income = 12

Dividend = 0

Number of Shares Outstanding = 6

Balance Sheet As of June 30, 2021

Total Assets = 100

Total Shareholder's Equity = 50

You expect this company to maintain constant return on equity, payout ratio, and mixture of debt and equity in perpetuity. Based on this information, what earnings per share would you expect this company to have during the 2023 fiscal year ending on June 30, 2023?

A. Between $0 and $2

B. Between $2 and $4

C. Between $4 and $8

D. Between $8 and $12

E. More than $12

3. Is the following statement true or false:

If a company has a market beta of 1 then this companys Blume (1971) adjusted beta would be 1.3.

A. True

B. False

4. You expect a company to have a dividend of $10 per share in one year. Afterwards you expect dividends to grow at a 3% rate. Today this companys share price is $100. Based on this information and the growing perpetuity formula, what is this companys cost of equity.

A. Between 8% and 10%

B. Between 10% and 12%

C. Between 12% and 14%

D. More than 14%

5. You have gathered the following information for a company:

Income Statement Year Ended June 30, 2022

Net Income = 12

Dividend = 0

Balance Sheet As of June 30, 2021

Total Assets = 100

Total Shareholder's Equity = 50

You expect this company to maintain constant return on equity, payout ratio, and mixture of debt and equity in perpetuity. Based on this information, what is this companys return on equity during the 2022 fiscal year?

A. Between 0% and 10%

B. Between 10% and 20%

C. Between 20% and 30%

D. More than 30%

6. You have gathered the following information for a company:

Income Statement Year Ended June 30, 2022

Net Income = 12

Dividend = 0

Number of Shares Outstanding = 6

Balance Sheet As of June 30, 2021

Total Assets = 100

Total Shareholder's Equity = 50

You expect this company to maintain constant return on equity, payout ratio, and mixture of debt and equity in perpetuity. Based on this information, what is this companys earnings per share during the 2022 fiscal year ending on June 30, 2022?

A. Between $0 and $4

B. Between $4 and $8

C. Between $8 and $12

D. More than $12

7. You have gathered the following information for a company:

ROE calculated using beginning of period book value of equity.......................................................................... 10%

Plowback ratio.......................................................................... 25%

You expect this company to maintain constant return on equity, payout ratio, and mixture of debt and equity in perpetuity. Based on this information, what is this companys sustainable growth rate?

A. Less than 2%

B. Between 2% and 4%

C. Between 4% and 6%

D. Between 6% and 8%

E. More than 8%

8. You have gathered the following information for a company:

ROE calculated using beginning of period book value of equity.......................................................................... 10%

Payout ratio....................................................................... 37.5%

You expect this company to maintain constant return on equity, payout ratio, and mixture of debt and equity in perpetuity. Based on this information, what is this companys sustainable growth rate?

A. Less than 2%

B. Between 2% and 4%

C. Between 4% and 6%

D. Between 6% and 8%

E. More than 8%

9. Use the information in the table below to calculate this companys weighted average cost of capital:

Market value of equity	100
Market value of debt	100
Cost of equity	10%
Cost of debt	6%
Risk free rate	4%
Tax rate	20%

A. Between 2% and 4%

B. Between 4% and 6%

C. Between 6% and 8%

D. More than 10%

10. Suppose for the most recent fiscal year, Nvidia had revenues of $5, Costs of $2, Depreciation of $0.2, Interest Expense of $0.04, a decrease of $0.5 in NWC, capital expenditures of $0.40, and a tax rate of 25%. What is Nvidia's Free Cash Flow for the most recent period?

A. Between $0 and $2

B. Between $2 and $4

C. Between $4 and $6

D. More than $6