1.

Firm XYZ's required return is 16%, and the price of the stock is $80 per share. D ₀ = $3. Dividend will grow by 20% for the next four years. After the fourth year, the dividend will grow at the rate of g forever. Find g. (Hint: D ₄ = $3.00*(1.20) ⁴. And then you can pick A, B, C, or D, and try.)

		10.34%
		10.24%
		10.71%
		10.15%

2.

Pick the correct answer.

		NPV < 0, then IRR < 0
		NPV increases with WACC (weighted average cost of capital, the discount rate)
		NPV> 0, then IRR > WACC (weighted average cost of capital, the discount rate)
		NPV = 0, then IRR = 0

Could you please answer question 1 and 2?