1. Extensive enterprise inc. is expected to generate a free cash flow of $3,300.00 million this year, and the fcf is expected to grow at a rate of 21.40% over the following two years. After the third year, however, the fcf is expected to grow at a constant rate of 2.82% per year, which will last forever. If extensive enterprise inc.'s weighted average cost of capital is 8.46% what is the current total firm value of extensicve enterprise inc.?

10,260.11 Million

98,924.65 Million

79, 753.13 Million

95,703.76 Million

2. Mr. Funperson will graduate with an engineering BS degree from USF before his 25th birthday, and start his first professional job immediately upon his graduation. Mr. Funperson decides to set up a retirement account and makes his first monthly deposit into the retirement account a month after his 25th birthday. He will continue making these monthly deposits until he retires at 65. His goal is for his retirement account to reach 500,000 dollars on his 65th birthday. Assume an interest rate of 6% per year.

Calculate Mr. Funperson's monthly deposit if he stops making deposits after his 55th birthday. That is, his last deposit will be made on his 55th birthday.

a) $248

b) $274

c) $299