12:55 PM TODAY If you expect NoDiv Corporation to sell for $75 per share in three years while paying no dividends along the way, and if your required rate of return is 16% per year, how much is the stock worth today? 10:21 AM ir Questions: (Each question have equal weights) 1. East stage has just paid a dividend of $2 per share the growth rate will be %10 for the next 2 years, but after the dividends will grow at a constant rate of %5 forever. If the required rate of return is % 15 what should be the price of West Stage shares? 2. Calculate the net present value (NPV) of the following project. Assume that the cost of capital, is %10. Y 0 1 2 3 Project A (in dollars) - $50.000 30.000 25.000 20.000 3. Sun Co's bonds, maturing in 7 years, pay 4 percent interest on a $1000 par value. Interest is paid annually. If your required rate of return (market interest rate) is %6, what is the value of the bond? What happens if market interest rate rises? Explain the reason. atement of cash flow for the rear of 2010 +1.10-11 12.1 13. 114 115 . 3. Sun Co's bends, maturing in 7 years, pay 4 persent interest on a $1000 par value. Interest is paid annually. If your required rate of retuco (market interest rate) is %6, what is the value of the bond? What happens if market interest rate rises? Explain the reason 4. Prepare the statement of cash flow for the year of 2010. Jones Company Financial Information December 2009 December 2010 Net Income Accounts receivable Accumulated depreciation Common stock Paid-in capital Retained earnings Accounts payable $2,000 750 1,000 4,500 7,500 1,500 750 $4,000 950 1,500 5000 8500 3,500 750 Good Luck