Question 2 (2 points) You have information from four different investments over one year. Given the following information which one(s) will you choose? Investments Expected Return Variance (of returns) Venture A 20% 20% Venture B 10% 15% Venture C 5% 5% Venture D 40% 80% Ventures B&C Ventures A&D Venture D Ventures A&B Ventures B&D Venture B Venture C Venture A Question 3 (3 points) Given the following information, what should be the sustainable growth rate (SGR) for Ventura venture? Sales Net profit Assets Payables $500,000 $75,000 $1,000,000 $200,000 Beginning Equity $300,000 R/E Dividends $50,000 $20,000 Not Determinable. 8.33%. 6.66%. 18.33%. 25%. 26.66%. 13.33%. Question 4 (3 points) The following information is taken from SecureNow case study. What should be the (approximate) enterprise value of SecureNow (in million INR), if its EBITDA is 7.3 million INR? Answer this question based on information provided here. EV/EBITDA EV/EBIT EV/Revenue Marsh 2.27 11.43 13.4 Aon 2.43 12.43 17.15 Willis 2.62 11.48 13.97 Arthur 2.34 14.22 22.88 Brown 3.54 10.51 12.92 $99. $86. $82. $111. $60. $88. Question 5 (3 points) The Big Dream Venture is considering going public and is looking to find the right stock price (intrinsic value). It is estimated that their free cash flow will be 3 million dollars next year and it will be at a constant growth rate of 6% forever. The venture also owes 10 million dollars in debt. They also have 2 million dollars surplus cash. If the number of outstanding shares is 1 million and the appropriate cost of capital is 10%, what should be the share price apiece? $75. $300. $30. $65. $77. $67.