QUESTION 42 Mckenzie, Inc. reported net income of $8.5 million for last year. Depreciation expense totaled $5 million and capital expenditures came to $2 million. Free cash flow is expected to grow at a rate of 2.5% for the foreseeable future. McKenzie faces a 40% tax rate and has a 0.50 debt to equity ratio with $20 million (market value) in debt outstanding, McKenzie's equity beta is 14, the risk-free rate is currently 5% and the market risk premium is estimated to be 75 McKenzie has 10 million shares of common stock outstanding. What is the current value of a share of McKenzie stock? Pick the closest answer. O $6.62 O $7.32 O $8.45 O $9.14 O $10.25 QUESTION 43 Which one of the following correctly identifies the phenomenon that states that one month has the greatest tendency for small stocks to earn large returns? Click Save and Submit to suve and submt. Cliek Save All Answers to save all answers. Save All Ans