1. Last? year, Hudson? Enterprises, Inc. had an unlevered cash flow? (FCFu of? $100 million and the capital cash flow? (CCF) of? $120 million. Both FCFu and CCF are expected to grow by? 4% in? perpetuity, and the? after-tax WACC is? 10%. What is the? firm’s value?

2. You are considering two independent projects with the following cash flows. The required return for both projects is 10%. Given this information, which one of the following statements is correct assuming you have sufficient funds to invest in both if needed? Year Project A Project B 0 -$950,000 -$125,000 1 $330,000 $ 55,000 2 $400,000 $ 80,000 3 $450,000 $ 80,000.

3. A call option on Jupiter Motors stock with an exercise price of $70 and one-year expiration is selling at $8. A put option on Jupiter stock with an exercise price of $70 and one-year expiration is selling at $7.5. If the risk-free rate is 10% and Jupiter pays no dividends, what should the stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price $