*Question A firm is considering taking a project that will produce $12 mill that will produce $12 million of revenue per year. Cash expenses will be >5 mm es will be $5 million, and depreciation expenses will be $1 million per vear. If the firm takes that , mon per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $3 million. What is the free cash flow on the project. nervear, if the firm is marginal tax rate? FCF = Net sales - (-D(1-1) + A. $2.2 million B. $2.8 million C. $3.1 million D. $3.4 million 12-3-5-1x10.6)+1 *Question BioSci, Inc., a biotech firm has forecast the following growth rates for the next three years: 30 percent, 27 percent, and 25 percent. The company then expects to grow at a constant rate of 7 percent forever. The company paid a dividend of $1.50 last week. What are the dividends expected over the next four years? (Round final answers to one decimal place) 1 C o ndo A. $1.95,2.340, 2.691, and 2.879 B. $1.95,2.438, 2.925, and 3.130 C. $1.95,2.477, 3.096, and 3.312 D. $1.95,2.498, 3.125, and 3.530 *Question Preferred stock valuation: Ajax Company has issued perpetual preferred stock with a par of $100 and a dividend of 9 percent. If the required rate of return is 8 percent, what is the stock's current market price? A. $68.75 B. $87.50 C. $100.00 D. $112.50 *Question Neusci, Inc., a biotech firm has forecast the following cash flows for the next three years: $2.60, $3.25, and $3.90. The company then expects cash flows to grow at a constant rate of 5 percent for forever. If the required rate of return is 25 percent, what is the market value of this stock? (Do not round intermediate calculations. Round final answer to two decimal places.) A. $16.64 B. $22.48 C. $29.03 D. $31.01