1. Assume that you are interested in a zero-coupon bond. If the market interest rate is 4 percent, and it matures in twenty-eight years, what should the price of the bond be?
2. Assume the following information for ABC Inc:
Total Invested Capital (TIC) = $300 million
Earnings before interest and taxes (EBIT) = $100 million
ABC Corporate Tax Rate (T) = 40%
Cost of Capital (a.k.a. WACC) = 10%
ABC Corporation's Economic Value Added (EVA) is: ______