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19. You have just applied for a job contract at XYZ Company. This company 2 points will pay you $175 at the end of the
19. You have just applied for a job contract at XYZ Company. This company 2 points will pay you $175 at the end of the first year, $252 at the end of the second year, and $300 at the end of the fourth year. Currently you have a saving account in the bank that pays you a rate of 8% compounded annually. What is the future value of such contract at the end of the fourth year? + O a) $1,000 O b) $300 O c) $657 O d) $557 O e) None of the above 2 points 20. Assume that you will receive $2.000 a year in Years 1 and 2. zero dollars in year 3. $4.000 a year in Years 4 and 5, and $3.000 in Year 6, with all cash flows to be received at the end of the year. If you require a 14 percent rate of return. You will accumulate (future value) at end of year 6: O a) S 9.851 b) $13.250 O c) $11.714 O d) $18.547 O e None of the above 21. Rally Corporation just paid a dividend of DO = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.25. the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price? O a) $10.45 O b) $10.89 c) $12.26 O d) $12.64 O e None of the above
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