You are valuing Soda City Inc. It has $125 million of debt, $80 million of cash, and 175 million shares outstanding. You estimate its cost of capital is 10.5%. You forecast that it will generate revenues of $720 million and $780 million over the next two years, after which it will grow at a stable rate in perpetuity. Projected operating profit margin is 30%, tax rate is 25%, reinvestment rate is 40%, and terminal EV/FCFF exit multiple at the end of year 2 is 12. What is your estimate of its share price

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.