10.

Old Quartz Gold Mining Company is expected to pay a dividend of $8 in the coming year. Dividends are expected to decline at the rate of 2% per year. The risk-free rate of return is 6% and the expected return on the market portfolio is 14%. The stock of Old Quartz Gold Mining Company has a beta of -0.25. The intrinsic value of the stock is ______.

$80.00

133.33

$200.00

$400.00

none of the above

A company is trying to decide between two mutually exclusive projects. Each project has a cost of capital of 18%. Project A has an NPV of $215,000 and an IRR of 28.4%. Project B has an NPV of $154,000 and an IRR of $36.8%. Which project should the company choose if the goal of the firm is to maximize shareholder wealth?

	Project A
	Project B
	Both projects should be chosen
	Neither project should be chosen