1. What does a stock’s standard deviation of expected return measure?

1) Total risk

2) Non-systematic risk

3) Market risk

4) Diversifiable risk

5) Company risk

2. A company’s weighted average cost of capital is 10.8% per year and the market intrinsic value of its debt is $33.1 million. The company’s free cash flow next year is expected to be $4.7 million and the free cash flow is expected to grow forever at a rate of 3.7% per year. If the company has three million shares of common stock outstanding, what is the intrinsic value per share?

1) $9.48

2) $13.72

3) $12.24

4) $15.12

5) $11.03