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1.1 Stars Inc., is a fast-growing technology company. The firm projects a rapid growth of 40% for the next two years and then a growth

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Stars Inc., is a fast-growing technology company. The firm projects a rapid growth of 40% for the next two years and then a growth rate of 20% for the following two years. After that the firm expects a constant-growth rate of 8%. The firm expects to pay its first dividend of $ 1.25 a year from now. If your required rate of return stocks is 20%, what is the current price of the stock? A $4.70 B. $15.63 C. $22.68 D $30.30 INFORMATION BELOW APPLY TO THE 2 PROBLEMS/QUESTIONS THAT FOLLOW: J-Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2 mil, $3 mil, $4 mil, and $5 mil. over the next 4 years. Its cost of capital is 16%

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