1. A company's most recent annual Free Cash Flow is $180,000,000. Free cash flow is expected to grow by 15% per year for the next 10 years and then grow by 3% per year thereafter. Investors required rate of return is 11%. What is the current value of the stock?
$11,300,755,080
$2,250,000,000
$5,404,011,121
$1,636,363,636
2. A firm has an average annual accounts receivable balance of $3,200,000, an average annual inventory balance of $2,700,000, annual sales of $15,000,000, and annual cost of goods sold of $13,500,000. How many days does it take the firm to sell its inventory and collect the payment on the sale (assume all sales are on credit)?
150.87
143.57
73
4.87