1. Suppose a venture's first cash flow is expected in Year 9, and the cash flow is expected to be 7,918,886. A comparable firm has earnings of 16,363,267 and a market cap of 234,058,024. Assuming a discount rate of 31%, find the present value (at Year 0) of the firm in dollars.
2. A stock has an expected return of 12 percent, the risk-free rate is 3.5 percent, and the market risk premium is 5 percent. What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)