1. What risk term is used to describe the relationship between market yields and bond prices?
Interest rate risk
Default risk
Unsystematic risk
Inflation risk
2. 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