1. You are a valuation expert working for a M&A firm charged with finding the value of Genomix Corp, a biotech firm with heavy R&D.

1. What problems arise are likely to arise when attempting to value of Genomix via its financial statements?
2. How might the firms Enterprise Value present a more direct valuation route? What problems do you see using this valuation route?

2. Apple and Amazon corporations tend to enjoy a high PE multiple while GM and Ford do not. How do these facts guide your PE analysis of stocks in general?

3. Your property is expected to produce end-of-year cash flows of $120,000 per year for the next 10 years. You expect to sell your property for $1,500,000 at the end of the 10^th year. The beta of your property is 1.2. The expected return on the Market is 10% and the Treasury bond yield is 3%. What is the fair value of the property?