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The data in the third sheet of the Excel file shows the income statements and balance sheets of a firm from the previous four fiscal years. Fiscal year-end of the firm is December 31. Use this data to answer questions 20 through 22.   Assume that the depreciation in 2024 was $2,570 million. What is the free cash flow in 2024? Round the result to the nearest million dollars before entering your answer. DO NOT use the “$” symbol. For example, if the result is $1,234.56 Million, enter it as 1,235, NOT $1,234.

A loan that you took out from your bank requires monthly payments of $1000 for 36 months. The payments are to be made at the end of each month.  If the initial loan amount is $20,000, what is the EAR on the loan? Enter your answer below as a percentage, but without the “%” symbol. Round the results up to the second decimal. For instance, if the result is 0.123456, enter it as 12.35 (NOT 12.35%). Answer:

Find the envelope portfolio with an expected return of 5%.  What is the weight of Asset 6 in this portfolio? Enter your answer as a percentage without the “%” symbol. Round the answer to the second decimal. For example, if the result is 0.123456, your answer should be 12.35, NOT 12.35%. (Hint: Use convex combinations of the portfolios in questions 2 and 3.) 

The data file below includes end-of-month prices of three assets between August 2023 and August 2025. Answer questions 4-9 using this data file. Midterm_Data_v2-1.xlsx   Find the mean return of a portfolio that is 70% A and 30% B. Enter your answer below as a percentage, but without the “%” symbol. Round the results up to the second decimal. For instance, if the result is 0.123456, enter it as 12.35 (NOT 12.35%). Answer:  

What is the CAPM alpha of Caterpillar? Enter your answer as a percentage without the “%” symbol. Round the answer to the second decimal. For example, if the result is 0.123456, your answer should be 12.35, NOT 12.35%.

The kneading of dough is important due for:

Using the “excess return” technique, find the envelope portfolio corresponding to the constant 0. What is the weight of Asset 1 in  this portfolio? Enter your answer as a percentage without the “%” symbol. Round the answer to the second decimal. For example, if the result is 0.123456, your answer should be 12.35, NOT 12.35%.

Assume that the free cash flows will grow at an annual rate of 6.5% in the next 5 years and at a rate of 4.1% beyond that. Also assume that the WACC of the firm is 10.5% per year. What is the enterprise value at the end of 2024? Use end-of-year discounting. Round the result to the nearest million dollars before entering your answer. DO NOT use the “$” symbol. For example, if the result is $1,234.56 Million, enter it as 1,235, NOT $1,234.

Green beans cooked in an acid solution will turn what color?

An investment project promises to pay $1000 at the end of the first year. After this initial payment, the cash flows will grow at a constant rate of 7% for four more years. After the fifth year, growth rate will drop to 4%, and the payments will continue to grow at this rate indefinitely. All payments are made at the end of the year. If the project requires an initial investment of $15,000 and the appropriate annual discount rate for the project is 10%, what is the NPV of the project? Round your answer to the nearest cent and enter your answer without either the dollar sign or the thousands separator. For example, if the answer is $1,234.567, enter it as 1234.57. Answer: