A stock just paid a dividend of $2.40. The dividend is expected to grow at a...

A stock just paid a dividend of $2.40. The dividend is expected to grow at a rate of 5% forever. If the stock is currently selling for $25.00, what return do investors require to hold this stock? 18%, 17%, 16%, 15%

A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $400,000; Year 2 – 500,000; Year 3 - $650,000; Year 4 – 700,000; Year 5 – 800,000. What is the project’s discounted payback, given a 10% required rate of return? 4.52 years, 3.50 years, 5 years, 4.92 years

What is the projects profitability Index? 1.12, 1.26, 1.20, 1.30

Expert Solution

1)

Return =Expected div/price+growth rate =(2.4*1.05)/25+5% =15%

2)

Calc:-

jeff jeffy answered 2 years ago

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