1. What is the firms free cash flow at the end of Yr 1?
   1. $81
   2. $0
   3. $67.50
   4. $128.96
   5. $34.77
2. What is the firms horizon value at the end of Yr 4?
   1. $9,035
   2. $8,267
   3. $12,198
   4. $13,011
3. What is the firms current equity value of price per share?
   1. $85.65
   2. $56.70
   3. $150.26
   4. $46.91

Onyx Inc. has current sales of \\( \\$ 8,000 \\) (in millions), an operating ratio of \5, a capital requirement ratio of \30, a tax rate of \40 and a corporate cost of capital of \10. Under new management sales are expected to grow 20\\% in Yr 1, 15\\% in Yr 2, 8\\% in Yr 3, 4\\% in Yr 4 and then grow at a constant rate of \4 after Yr 4 . In addition, the firm has the following balance sheet items: \\[ (000,000) \\] \\( \\begin{array}{lc}\\text { Short-term investments }= & \\$ 50 \\\\ \\text { Short-term debt (notes payable) }= & \\$ 200 \\\\ \\text { Long-term debt (bonds) }= & \\$ 500 \\\\ \\text { Preferred stock }= & \\$ 0 \\\\ \\text { Number of shares of common stock = }\\end{array} \\)