Question 13a: A firm owns $5m of trucks with a beta of 2 and $5m of cash with a beta of zero. The firm is funded by 60% debt and 40% equity. All figures above are current market values. The firm has 4 million shares on issue. The risk free rate is 2% pa and the market required return is 8% pa. The firm's loans have a coupon rate of 6% and a yield to maturity of 5% pa. Ignore taxes. The firm then buys some under-priced new trucks for $3m that are actually worth $4m, funded by more loans issued at the same coupon rate and yield as the existing loans. Which of the following statements is NOT correct? All answer options are rounded to 6 decimal places. The firm's: O Select one: a. Assets are worth $14m, have a beta of 1.5 and required return of 11% pa. b. Debt is worth $9m and has a beta of 0.5. c. Equity is worth $5m and has a beta of 2.7. d. Equity required return is 18.2% pa. e. The share price is $1.25. o O Question 14b: Define the following measures of profit and cash flow as is normal: NPAT = (Rev - COGS - Fixed Costs - Depr - IntExp)*(1-tc) = Net Profit After Tax NOPAT = (Rev - COGS - Fixed Costs - Depr)*(1-tc) = Net Operating Profit After Tax FFCF = NPAT + Depr - Capex - ANWC + IntExp = Firm Free Cash Flow OFCF = NOPAT + Depr - Capex - ANWC = Operating Free Cash Flow EFCF = Equity Free Cash Flow DebtCF = Cash Flow to Debt holders Which of the below statement lists the various cash flows in order from biggest to smallest for a firm with a market debt-to-assets ratio of 25%? Select one: a. EFCF, FFCF, OFCF, DebtCF. b. EFCF, OFCF, FFCF, DebtCF. C. FFCF, OFCF, EFCF, DebtCF. d. OFCF, FFCF, EFCF, DebtCF. e. OFCF, EFCF FFCF, DebtCF