You are comparing two annuities which offer monthly payments for ten years. Both annuities are identical with the exception of the payment dates. Annuity A pays on the end of each month while annuity B pays on the first day of each month. Which one of the following statements is correct concerning these two annuities?

Assume you own NNN Corp. that has $100 million in cash and $750 million in debt.  The company is generating free cash flow of $125 million per year starting this year and will grow at 7% per year for the foreseeable future.  If the weighted average cost of capital is 12%, what is the firm’s equity value per share if they have 100 million shares outstanding?

You are considering buying Goggle stock and see the beta is 1.5, the risk-free rate is 3%, and the expected return on the market is 8%. What is the required return on Goggle?

    Beta Volatility “Eenie” 0.45 20% “Meenie” 1.75 18% “Miney” 1.05 25% “Moe” 1.20 35%   Using the table above, which of the firms has the most stand alone risk?  

Download the template and save to your desktop for use in the exam.  o.k. when it asks if you want to navigate away from the page you will have to enable editing save as your name on your desktop Do not use your own template or a Excel file; you must use this to receive the points for upload on this exam.   Final Exam Template      

  Beta Volatility “Eenie” 0.45 20% “Meenie” 1.75 18% “Miney” 1.05 25% “Moe” 1.20 35% Using the table above, which of the firms has the most portfolio risk?

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