1) ABC Inc. forecasts that it’s free cash flow in coming year, that is, at t = 1, will be -$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at the constant rate of 4% forever. If weighted average cost of capital is 14%, Determine the firm's value of operations, in millions?
2) Write down the most popular future contracts that investors purchase when there are international investments in the portfolio? Which factors do you take into thought when speculating on the stock purchase?
3) Financial picture of HD company,
Net income: 267 M
Sales: 2,591 M
Total assets: 2,112 M
Total debt: 951 M
Total assets: 2,112 M
Common equity: 1,161M
Current assets: 949 M
Current liability: 518 M
Inventories: 169 M
Compute the given ratios: ROE.