(1) Post MyLoan Corp. is a company that publishes corporate bond information. It has just paid a $1.00 dividend. For the next 3 years dividends are expected to grow at rates of 20%, 30%, and 15%, with the growth rate falling off to a constant 8% thereafter. If the required return is 12%, what is the current share price? What is the price expected to be in 12 years? (2) Eh Dell is a Canadian computer manufacturer. Here are the projected cash flows for a new project: Year 0 1 2 3 4 Cash Flow -$200,000 80,000 -20,000 160,000 120,000 The firm's required return on projects of this type is 12%. Calculate the project's NPV, IRR, & MIRR. (3) A wool processing company, Ed's Shearin', is evaluating the following project: Time 0 Cash Flow $500,000 Should the project be accepted or rejected? 2 1 -$1,605,000 $1,716,900 Year 0 1 2 3 4 (4) Your company, Car dB Inc., provides audio equipment for motor vehicles. You have a choice between 2 mutually exclusive investments. Project A -$60,000 Project B -$60,000 3 -$612,040 10,000 50,000 15,000 12,000 30,000 12,000 40,000 10,000 When would you choose Project A? Project B? Neither? (5) With the growing popularity of the sport of curling, two recent MBA graduates decided to market a "curling lifestyle for the home." With limited capital, they decided to focus on curling themed table and floor lamps to accent people's homes. They projected unit sales of these lamps to be 7,000 in the first year, with growth of 8% each year for the next four years after that. Production of these lamps will require $35,000 in net working capital to start and additional net working capital investments each year equal to 10% of the projected sales increase for the following year. Total fixed costs are $95,000 per year, variable production costs are $20 per unit, and the units are priced at $48 each. The equipment needed to begin production will cost $180,000. The equipment will be depreciated according to a five-year MACRS schedule and is not expected to have a salvage value. The effective tax rate is 40%, and the required rate of return is 25%. What is the NPV of this 5-year project?

(1) Post MyLoan Corp, is a company that publishes corporate bond information. It has just paid a $1.00 dividend. For the next 3 years dividends are expected to grow at rates of 20%,30%, and 15%, with the growth rate falling off to a constant 8% thereafter. If the required return is 12%, what is the current share price? What is the price expected to be in 12 years? (2) Eh Dell is a Canadian computer manufacturer. Here are the projected cash flows for a new project: The firm's required return on projects of this type is 12%. Calculate the project's NPV, IRR, \& MIRR. (4) Your company, Car dB Inc., provides audio equipment for motor vehicles. You have a choice between 2 mutually exclusive investments. When would you choose Project A? Project B? Neither? (5) With the growing popularity of the sport of curling, two recent MBA graduates decided to market a "curling lifestyle for the home." With limited capital, they decided to focus on curling themed table and floor lamps to accent people's homes. They projected unit sales of these lamps to be 7,000 in the first year, with growth of 8% each year for the next four years after that. Production of these lamps will require $35,000 in net working capital to start and additional net working capital investments each year equal to 10% of the projected sales increase for the following year. Total fixed costs are $95,000 per year, variable production costs are $20 per unit, and the units are priced at $48 each. The equipment needed to begin production will cost $180,000. The equipment will be depreciated according to a five-year MACRS schedule and is not expected to have a salvage value. The effective tax rate is 40%, and the required rate of return is 25%. What is the NPV of this 5 -year project