Bruin Inc. will have earnings of $15 million next year and is projected to grow at a constant rate of 6 percent forever. All earnings are paid out as dividends to shareholders.

The company plans to launch a new project three years from now that will cost $10 million. The project will increase the firm's annual earnings by a constant $8.3 million every year forever starting one year later (i.e. 4 years from now).

What is the market value of the company stock? The discount rate is 10.6 percent.

Select one:

a. $192 million

b. $394 million

c. $138 million

d. $377 million

e. $50 million

The table shows the mid-year populations (in millions) of five countries in 2015 and the projected populations (in millions) for the year 2025.

 for the population of each country by letting 

t = 15

 correspond to 2015. Use the model to predict the population of each country in 2035. (Round your values of b to five decimal places. Round your values of a to one decimal place. Round your population predictions for 2035 to one decimal place.) 

CountryExponential ModelPopulation in 2035 
(in millions)Ay = 

 By = 

 Cy = 

 Dy = 

 Ey = 

(b) You can see that the populations of Country D and Country E are growing at different rates. What constant in the equation 

y = ae^bt

 gives the growth rate? Discuss the relationship between the different growth rates and the magnitude of the constant.

The constant b determines the growth rate. The greater the rate of growth, the smaller the value of b.The constant a determines the growth rate. The greater the rate of growth, the greater the value of a.    The constant b determines the growth rate. The greater the rate of growth, the greater the value of b.The constant a determines the growth rate. The greater the rate of growth, the smaller the value of a.

What is the present value of an investment that pays $200 every other year forever if the first cash flow occurs in two years? What is the value when the first cash flow occurs in one year? The opportunity cost of capital is 12% per year.

Consider a project with a 6-year life. The initial cost to set up the project is $1,200,000. This amount is to be linearly depreciated to zero over the life of the project. You expect to sell the equipment for $240,000 after 6 years. The project requires an initial investment in net working capital of $120,000, which will be recouped at the end of the project.

You estimated sales of 63,000 units per year at a price of $160 each. The variable cost per unit is estimated to be $128 and fixed costs are $240,000 per year.

You expect unit sales, prices, variable and fixed costs to be within 15% of your estimates.

The required return is 12% and the tax rate is 34%.

1. What is the NPV in the base case?

2. What is the NPV in the optimistic case?

3. What is the NPV in the pessimistic case?

Midlands Inc. had a bad year in 2016. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 79,000 units of product: net sales $1,975,000; total costs and expenses $1,805,000; and net loss $170,000. Costs and expenses consisted of the following.

You are watching your niece who is almost a year old and notice that she is unconscious on the floor with marbles around her. Breaths don’t go in.

Consider a project with a 4-year life. The initial cost to set up the project is $1,200,000. This amount is to be linearly depreciated to zero over the life of the project. You expect to sell the equipment for $240,000 after 4 years. The project requires an initial investment in net working capital of $120,000, which will be recouped at the end of the project.

You estimated sales of 52,000 units per year at a price of $177 each. The variable cost per unit is estimated to be $141.6 and fixed costs are $240,000 per year.

You expect unit sales, prices, variable and fixed costs to be within 15% of your estimates.

The required return is 13% and the tax rate is 34%.

1. What is the NPV in the base case?

2. What is the NPV in the pessimistic case?

3. What is the NPV in the optimistic case?

3. The expected dividend next year is $1.30 and dividends are expected to grow at 5% forever. What is the value of this promised dividend stream if the discount rate is
a) 8%
b) 5%
c) 3%

Consider a project with a 4-year life. The initial cost to set up the project is $1,200,000. This amount is to be linearly depreciated to zero over the life of the project. You expect to sell the equipment for $240,000 after 4 years. The project requires an initial investment in net working capital of $120,000, which will be recouped at the end of the project.

You estimated sales of 52,000 units per year at a price of $177 each. The variable cost per unit is estimated to be $141.6 and fixed costs are $240,000 per year.

You expect unit sales, prices, variable and fixed costs to be within 15% of your estimates.

The required return is 13% and the tax rate is 34%.

1. What is the NPV in the base case?

2. What is the NPV in the pessimistic case?

3. What is the NPV in the optimistic case?

1. Mr. Ragnor, a 66 year old male, was referred to the department of respiratory diseases at Mount Sighania Hospital with a dry cough accompanied with blood in phlegm over a month. The previous medical history of Mr. Ragnor is uneventful, with the exception of a 40 pack/year history of smoking. Physical examination revealed a rough respiratory murmur in each lung. Laboratory findings were within normal limits, with the exception of prostate special antigen (PSA) at 5.35 ng/ml. Chest CT images revealed an irregular soft-tissue mass with a 9.6 cm maximum diameter, internal uniformity density in the middle-low right lobe close to pulmonary hilum, and a nodular high-density shadow with a 2.5 cm maximum diameter that was a lobulated lesion in the left upper lobe. The patient was positive for metastasis to the mediastinal lymph node. Fiber bronchoscopic biopsy revealed squamous cell carcinoma in the left lobe and SCLC in the right lobe. Additionally, the pharmacogenomic testing revealed mutations in RAS because of which the RAS signaling is ON all the time. Which of the 2 intracellular signaling pathways activated by RAS may promote cell growth and proliferation? Please draw the downstream signaling events involved in the pathways.