What is the right answer ?

1. The Winter Wear Company has expected EBIT of $3,800 which is expected to continue for the foreseeable future, an unlevered cost of capit 15.4 percent and a tax rate of 22 percent. The company also has $2.600 of debt with a coupon rate of 5.7 percent. The debt is selling at par value.

What is the enterprise value of this firm? A $15.585 B) $19.819 C$12115 D) $12.055 E) $17.700

2 In an efficient market, the price of a security will (circle one): A) always rise immediately upon the release of new information with no further price adjustments related to that information. B) react to new information over a two-day period after which time no further price adjustments related to that information will occur. C)rise sharply when new information is first released and then decline to a new stable level by the following day. D) react immediately and accurately to any new information that affects the value of the issuing firm. E) be slow to react for the first few hours after new information is released allowing time for that information to be reviewed and analyzed