1. What is the amount of the annual interest tax shield for a firm with $3 million in debt that pays 12% interest if the firm is in the 21% tax bracket?

1. $126,000
2. $234,000
3. $36,000
4. $75,600

10. An unlevered firm expects to generate and payout free cash flows of $150,000 annually in the form of dividends and share repurchases starting next year. The discount rate is 15.5% and there are 135,000 shares outstanding. What is the current value per share?

    1. $7.38

    2. $7.17

    3. $1.08

    4. $6.87