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A) Diversified Industries, Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be -$18 milli...

A) 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 $35 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 13%, what is the firm's value of operations, in millions? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

B) ABC Enterprises’ bonds currently sell for $1,150. They have a 5-year maturity, an 8% coupon rate with interest paid semi–annually, and a par value of $1,000. What is their current yield? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

C) Tropical Resort, Inc.'s bonds currently sell for $1,350 and have a par value of $1,000. They pay a 12% coupon rate with interest paid semi–annually, and have a 15-year maturity, but they can be called in 3 years at $1,125. What is their yield to call (YTC)? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

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