The Value of Firm (D) = $80.00. The Value of Firm E is determined by yearly cash flow as follows; Year 1 = $40.00, Year 2 = $30.00, Year 3 = - $15.00, and in Year 10 = $5.00 to Perpetuity. The Cost of Capital for Firm 2 is; RF = 1.5%, Beta is 1.35 and the Toronto Stock Exchange at the beginning of the year was 16,000 and will close at 18,500. Total Synergy created will be $12.00. Find the Value of the Firm (D/E) if Firm D will pay $55.00 in Cash and $15.00 in Equity for Firm E.

Question 1 options:

	$97.0474
	$110.0474
	$86.7699
	$127.0474

Complete the Net Income Statement that follows with the following information; Sales =$500,000, Cost of Sales = 65.00%, Administrative cost are 10.00% and depreciation is 2.00%. It also has $100,000 in Total Debt costing 10.00%. The corporate tax is 30.00%. Find the Net income.

Question 7 options:

	$70,500
	$71,500
	$75,500
	$73,500

The Montreal Exchange has call options available for investors for Company Bravo. The Exercising price of the Call = $50.00 and will mature in 1 year from today while the market rate is at 12%. At maturity, the stock price (S1s) can be at either $55.00 or $70.00. Find the price of the Call today if the stock price today is at $44.50.

Question 8 options:

	$0.1429
	-$0.1429
	$0.1249
	-$0.1249