1. Present value = $20,000. Time frame = 4 years. Future value = $26,000. What is the interest rate?
A firm had a free cash flow (FCF) in the prior year of $125 million. The FCF is expected to grow at 3 percent per year into perpetuity. The appropriate discount rate is 12 percent. What is the firm's current value (in millions) based on the FCF model?
A. $1,042
B. $1,389
C. $1,555
D. $1,431
3. The Dyrdek Co. had $300,000 in 2014 taxable income. Use the tax rates from Table 2.3. Calculate the company’s 2014 income taxes. (Do not round intermediate calculations.) Taxes