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10. Using the information in question # 12, Austin's projected 2009 dividends are and its projected addition to retained earnings is A. $32.00 and $89.00

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10. Using the information in question \# 12, Austin's projected 2009 dividends are and its projected addition to retained earnings is A. $32.00 and $89.00 respectively. B. $44.50 and $64.00 respectively. C. $44.50 and $89.00 respectively. D. $32.00 and $101.50 respectively. E. none of the above V. International Aspect of Finance: 11. Solitaire Machinery is a Swiss multinational manufacturing company. Currently, Solitaire's financial planners are considering undertaking a 1-year project in the United States. The project's expected dollar-dominated cash flows consists of an initial investment of $1,000 and a cash inflow the following year of $1,200. Solitaire estimates that its risk-adjusted cost of capital is 14%. Currently, 1 U.S. dollar will buy 1.62 Swiss francs. In addition, 1-year risk-free securities in the U.S. are yielding 7.25%, while similar securities in Switzerland are yielding 4.5%. The expected forward exchange rate 1 year from now is A. 1.5785 SF per U.S. $ B. 1.62 SF per U.S. $ C. 1.85 SF per U.S. $ D. 1.368 SF per U.S. $ E. None of the above. 12. In question \# 15, if Solitaire undertakes the project, its net present value and rate of return of the project will be A. 52.63 Swiss francs and 20% respectively. B. 51.54 Swiss francs and 18.92% respectively. C. 41.54 Swiss francs and 16.92% respectively. D. 46.24 Swiss francs and 16.12% respectively. E. None of the above

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