1. Mooradian Corporation's free cash flow during the just-ended year (t = 0) was $250 million, and its FCF is expected to grow at a constant rate of 5.0% in the future. If the weighted average cost of capital is 12.5%, what is the firm's total corporate value, in millions?
2. You own a stock portfolio invested 20 percent in stock Q, 15 percent in stock R, 30 percent in stock S, and 35 percent in stock T. The betas for these four stocks are 1, 1.2, 0.6, and 1.5, respectively. What is the portfolio beta?