Reference no: EM132411127

1. Tropical Resort, Inc.'s bonds currently sell for $1,350 and have a par value of $1,000. They pay an 11% coupon rate with interest paid semi-annually, and have a 15-year maturity, but they can be called in 4 years at $1,125. What is their yield to call (YTC)? 
2. Deep Value, Inc.'s annual stock returns for the last ten years are: -5%, 15%, 11%, 18%, -8%, 9%, 16%, -3%, 3%, and 5%. The Market Index's annual returns for the same ten years are: 10%, 22%, 9%, 13%, -7%, 8%, 15%, -13%, -12%, and 18%. What is Deep Value's beta coefficient? 
3. Suppose Mature No Dividends Corporation's free cash flow during the just-ended (t = 0) year was $175 million, and FCF is expected to grow at a constant rate of 7% in the future. If the weighted average cost of capital is 17%, what is the firm's value of operations, in millions?
4. Diversified Industries, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 million (negative), but its FCF at t = 2 will be $33 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 16%, what is the firm's value of operations, in millions?