1.ABC Company is considering a new product. Total assets to support expansion cost is $500,000. It is estimated that ABC Company can generate $1,200,000 for annual sales with a 6% profit margin. What is the net income? a. $30,000 b. $72,000 c. $1,200,000 d. $102,000 2.Suppose you inherited $200,000 and invested it at 6% per year. How much could you withdraw at the end of each of the next 15 years? a. $23,431.83 b. $24,764.40 c. $17,843.15 d. $20,592.55 3.What would the future value of $100 be after 5 years at 10% compound interest? Select one: a. $161.05 b. $127.84 c. $134.54 d.$151.29 4. ABC Company will pay a dividend of $3.00 per share in the next 12 months (D1). The required rate of return (ke) is 10% and the constant growth rate is 5%. Compute Price of common stock. a. $60.00 b. $100.00 c. $42.86 d. $70.00 5. XYZ Companys preferred stock is selling for $25 a share. If the required return is 12%, determine the dividend value be two years from now. a. $3.76 b. $2.39 c. $2.50 d. $3.00