Question 1 5 pts You believe the market value of a firm's operating assets is $500 million. It has $30 million excess cash on its balance sheet. The firm's total outstanding debt (bonds) is $125 million. The firm has 3.3 million shares outstanding. What is your estimate for the firm's stock price? Pick the closest answer. $20 o o o $40 $60 d $80 O $100 O $120 Question 2 5 pts An investment has a CAPM beta of zero. Will this investment provide a guaranteed return with no risk? Please answer Yes/No and explain. Edit View Insert Format Tools Table 12pt v Paragraph B 10 Tv : p O words > Question 3 5 pts A firm has book equity of $450 million, debt of $420 million, and excess cash of $120 million. Its current stock price is $77/share, and its market capitalization is 1.33 billion. Its CAPM beta is 1.60. The tax rate is 21%. Yield to maturity on its debt is 5.0%. If the relevant risk-free rate is 2.0% and expected return on the market is 7%, what rate should we use to discount the free cash flows of this firm's typical projects? Pick the closest answer. 4% 5% O 6% 7% 8% O 9% 10% O 11% Question 7 10 pts A family friend is the CEO of Moonlight Market, a public supermarket chain on the west coast. She hands you some data on both her firm and some other public companies that she thinks might be useful. Using Multiples analysis, how much do you think her stock should sell for? (You can highlight this box and copy it into Excel if that would be helpful.) Firm Description Stock # Book Price Shares Equity Excess Debt EBITDA Sales Cash Moonlight Market 75 3 190 30 7 15 210 39 9 320 300 50 60 470 Fresh Grocery chain specializing in Farmer natural foods West coast general Sunshine supermarket with Asian Foods emphasis Moonshine Chain of retirement homes in Village the Pacific Northwest 47 22 850 4 0 72 1081 20 6 84 0 0 6 54 # Shares is in millions. All other numbers are in $millions except Stock Price ($). All data are the most recent available