11.Suppose an investor is considering the purchase of a share of the StoneM Company. The stock will pay a $3 dividend a year from today. This dividend is expected to grow at 10 percent per year for the foreseeable future. The investor thinks that the required return on this stock is 15 percent, given her assessment of StoneM risk. What is the price of a share Companys stock? Write your answer without decimals and no round up. (i.e. if your answer is $45.7, write down 45)

14.Investment ABC offers to pay you $9,300 per year for nine years (starting year 1), whereas Investment DEF offers to pay you $18,500 per year for ve years, starting in year 4. Which of these cash ow streams has the higher present value if the discount rate is 9 percent? Answer True if Investment ABC has the higher NPV, answer False if Investment DEF has the higher NPV.

True

False