1. Verizon Communications Inc has a common stock that will pay a dividend of $15 per share next year. If the required return is 0.26 and the growth rate of firm is 0.07, find the common stock price today. (Round to the nearest dollar.)

a. $79.5

b. $4.0

c. $32.1

d. $79.0

e. $53.0

2. Cablevision Systems Co A has a project with initial investment requiring $-150,000 and the following cash flows will be generated because of the project: $37,500; $86,000; $74,000; $152,000; and $50,000 respectively at the end of each year for the next five years. If the required rate of return is 0.18, find the internal rate of return (IRR) of the project.

a. 40.77%

b. 28.31%

c. none of the answers is correct

d. 25.39%

e.38.80%

3. Assurant Inc has a project with initial investment requiring $-64,000 and the following cash flows will be generated because of the project: $16,000; $51,000; $69,000; and $42,000 respectively at the end of each year for the next four years. If the required rate of return is 0.17, find the Net Present Value (NPV).

a. none of the answers is correct

b. 52,426

c. 41,584

d. 38,257

e. 20,792