Use the following information to answer the following two questions. Smith Oil has three separate divisions: Oil Exploration, Oil Refining, and Gas & Convenience Stores.

Division	Asset Beta	Next Period Free Cash Flow ($MM)	Growth Rate
Oil Exploration	1.4	450	4.0%
Oil Refining	1.1	525	2.5%
Gas & Convenience Store	0.8	600	3.0%

The risk-free rate of interest is 3% and the market risk premium (E[R_m]-r_f) is 5%.

In addition, assume that the growth rate applies to the cash flows in perpetuity (i.e., forever).

The value of the gas and convenience store division of Smith Oil (in $ millions) is closest to:

$15,000

$6,000

$22,000

$8,600

$4,500

The overall value of Smith Oil (in $ millions) is closest to: [Hint: the overall value is the sum of the value of each division.]

$31,250

$15,500

$18,846

$25,000

$40,000