QUESTION $13$

Narrative $1$: The XYZ Corporation has $$50$ million in excess cash and no debt. The company expects to generate additional FCFs of $$87$ million per year in subsequent years. The XYZ Corporation has $25$ million outstanding shares and has an unlevered cost of capital of $15$ percent.

Refer to Narrative $1.$ What is the enterprise value of the XYZ Corporation?

$$333\mathrm{.}33$ million

$$580$ million

$$87$ million

$$650$ million

QUESTION $14$

Refer to Narrative $1.$ If the firm uses all the excess cash to pay a dividend today, and uses all of the expected future FCFs to pay dividends, what is the cumdividend price per share of the XYZ Corporation?

$15\mathrm{.}33/$ share

$\frac{70\mathrm{.}00}{?}$ share

$\frac{45\mathrm{.}25}{?}$ share

$$\frac{25\mathrm{.}20}{?}$ share