1. You borrow $100 today at 4% for 1 year. What is the effective annual rate on this loan if interest is compounded monthly?
(Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.165))
Rate %.
2. A company has an FCF forecast of 10 in year 1 and 14 in year 2. Starting in year 3, FCF is expected to grow by 4% per year, forever. The WACC is 10%. What is the value of operations?