1) Suppose you know that a companys stock currently sells for $60 per share and the required return on the stock is 10 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If its the companys policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

Current dividend per share: ??

2) An investment project has annual cash inflows of $5,200, $3,000, $4,300, and $3,500, for the next four years, respectively. The discount rate is 13 percent.

a) What is the discounted payback period for these cash flows if the initial cost is $4,900? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period........

years

b) What is the discounted payback period for these cash flows if the initial cost is $7,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

c) What is the discounted payback period for these cash flows if the initial cost is $10,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16

Discounted payback period

years

3) A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:

Year	Cash Flow
0	$	28,900
1		12,900
2		15,900
3		11,900

If the required return is 14 percent, what is the IRR for this project?

IRR= ??