1. Suppose GM is expected to have an enterprise value (PV of FCFF) of $100 billion, but has $47 billion in debt. Given shares outstanding of 2 billion, what should be their stock price under the enterprise valuation approach?
2. If $11,000 is invested in a certain business at the start of the year, the investor will receive $3,300 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 7% per year?