1.

what is the Internal Rate of Return?

2. A stock is currently selling for $79 per share. Your required return for this type of stock is 12%. If the stock just paid a dividend of $4, what must the growth rate be?

3. You divide the dividend payment by the required rate of return to find the expected value of _______?

A. Common stock B. Preferred Stock C. treasury bonds D.Corporate Bonds E,Retained Earnings

4.Holiday Inn is considering remodeling plans for an older hotel. The building was purchased last year for $980,000. They want to create a modern resort with an estimated cost of $3.9 million. The estimated present value of the future income from this resort is $5.8 million. However, the firm was given a cash offer for the property of $1.6 million as is. Which one of the following represents the opportunity cost of the remodel project?

What is the net present value of a project with the following cash flows if the discount rate is 11%? Year Cash Flow -$32,000 4 $9,000 $10,000 $15,200 $8,700