1. A portfolio has a floor value of $4 million, a market value of $7 million, and a multiplier of 1.5. The portfolio will be 100% invested in stock when the portfolio value is A) $14 million B) $12 million C) $16 million D) $18 million
2. You invest in a business that you expect will earn profit (in thousands of dollars) of $12 by the end the year, $17 next year, $25 the third year, and $30 the 4th year. Other investments of equal risk earn 6%. How much is this business worth today? $84.00 $89.89 $71.20 None of the above $67.17.
3. C. F. Lee Inc. has the following income statement. How much after-tax operating income does the firm have? Sales $3,100.00 Costs 1,850.00 Depreciation 192.00 EBIT $1,058.00 Interest expense 285.00 EBT $773.00 Taxes (35%) 270.55 Net income $502.45 ? a. $825.24 b. $845.87 c. $584.55 d. $687.70 e. $680.82.