1. Whitestone Products is considering a new project whose data are shown below. The required equipment has a 4-year tax life, and the straight-line method is used for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 5 cash flow?

Equipment cost (depreciable basis)	$70,000
Sales revenues, each year	$42,500
Operating costs (excl. deprec.)	$25,000
Tax rate	35.0%

	a.	$13,850
	b.	$13,190
	c.	$17,500
	d.	$11,375.00
	e.	$15,003.45

2. $32.00 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, r _s, is 9.00%. What is the stock's current dividend today?

	a.	$1.352
	b.	$38.83
	c.	$1.0616
	d.	$40.85
	e.	$1.178