1. Suppose Leonard Nixon & Shull Corporation s projected free cash flow for next year is $100000 and FCF is expected to grow at a constant rate of 6%. If the company s weighted average cost of capital is 11% what is the value of its operations?a. $1714750b. $1805000c. $1900000d. $2000000e. $21000002. Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2 what is the Year 0 value of operations in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments).Year: 1 2Free cash flow: -$50 $100a. $1456b. $1529c. $1606d. $1686e. $17703. Based on the corporate valuation model the value of a company s operations is $1200 million. The company s balance sheet shows $80 million in accounts receivable $60 million in inventory and $100 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable $120 million in notes payable $300 million in long-term debt $50 million in preferred stock $180 million in retained earnings and $800 million in total common equity. If the company has 30 million shares of stock outstanding what is the best estimate of the stock s price per share?a. $24.90b. $27.67c. $30.43d. $33.48e. $36.824. Based on the corporate valuation model the value of a company s operations is $900 million. Its balance sheet shows $70 million in accounts receivable $50 million in inventory $30 million in short-term investments that are unrelated to operations $20 million in accounts payable $110 million in notes payable $90 million in long-term debt $20 million in preferred stock $140 million in retained earnings and $280 million in total common equity. If the company has 25 million shares of stock outstanding what is the best estimate of the stock s price per share?a. $23.00b. $25.56c. $28.40d. $31.24e. $34.365. Vasudevan Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3 what is the Year 0 value of operations in millions?Year: 1 2 3Free cash flow: -$20 $42 $45a. $586b. $617c. $648d. $680e. $714