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The following returns reflect annual returns to ABC's stock and the S&P 500. ABC S&P 500 2017 .05 .10 2018 -.05 - 10 2019 .015

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The following returns reflect annual returns to ABC's stock and the S&P 500. ABC S&P 500 2017 .05 .10 2018 -.05 - 10 2019 .015 .03 2020 -025 --05 What is your best guess at the beta for ABC's stock. 0.50 o .25 0.75 o 1.00 O 1.25 O 1.50 Question 4 2 pts ABC's analyst projects that ABC's expansion will add $50,000 in incremental after-tax free cash flows in year 1. After year 1 your analyst believes that the annual growth rate will be 3% in perpetuity. Assuming that ABC's WACC is 9.5%, what is the PV of these incremental free cash flows? O 769,231 O 92.694 O 723,569 O 706,455 Question 5 2 pts You collect data for a comparable firm to the business you are trying to sell. The comparable firm has: Debt - 100,000 Shares Outstanding - 10,000 EBITDA - 60,000 Excess Cash of $20,000 Share Price - $50 Using the Enterprise Value to EBITDA ratio, what is your estimate of your company's value if it has $5,000 of EBITDA? 0 48,333 0 41,667 O 50.000 O 57,333

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