2. Your uncle died last year and left you money in his will. You are to receive $30,000
next year (in time 1) and $70,000 three years from today (i.e., in time 3).
(a) What is the value of the inheritance today (in time 0) if the appropriate
1. The total book value of WTCs equity is $40 million and book value per share
outstanding is $12. The stock of WTC is currently selling for a price of $35 per share and
the beta of WTC is 1.35. The bonds of WTC have a face value of $66 million and sell a