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Year 1 : Revenue: 7 5 0 Fixed Costs: 5 0 Variable costs: 2 0 0 Additional investments in NWC: 3 Additional investments in operating

Year 1: Revenue: 750 Fixed Costs: 50 Variable costs: 200 Additional investments in NWC: 3 Additional investments in operating long-term assets: 80 Depreciation: 75 Corporate tax rate: 0.40 WACC : 0.15(don't worry about WACC for operating assets) Growth rate per year: From year 1 through year 5: 0.10 After year 5: 0.05 Market value: Non-operating short-term assets: 50 Non-operating long-term assets: 100 Market value: Short-term debt: 50 Long-term debt: 700 Common Stock: Market price per share: 15 Number of shares: 100 Select one: a. $31.32 b. $25.20 c. $22.72 d. $28.00

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