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1.Eddy Low, Inc. has an expected dividend next year of $5.60 per share, a growth rate of dividends of 10 percent, and a required return

1.Eddy Low, Inc. has an expected dividend next year of $5.60 per share, a growth rate of dividends of 10 percent, and a required return of 20 percent. The value of a share of Eddy Low, Inc.'s common stock is:

a)$28.00

B)$56.00

C)$22.40

D)$18.67 2)In developing financial planning, it is beneficial to work out different plans for different goals. Which of the following goals would lead to the developing of investment plan? A)Acquire financial assets B)Control expenses C)Meet target expenditures D)Manage cost of borrowings 3)The length of time required for a company to convert cash invested in its operations to cash received as a result of its operations is referred to as: A)Cash conversion cycle B)Working Capital C)Operating Cycle D)Average Payment Period 4)BagLovers Ltd. paid a dividend of $3.60 per share last year. The dividends are expected to grow at a constant rate of 3% per year. The current required return for the stock is 10%. Calculate the value of the common stock. A)$52.97 B)$56.57 C)$37.08 D)$132.00 5)Company C's common stock is currently $50 per share. The firm expects to pay a dividend of $3 at the end of the coming year. The dividends growth rate over the past few years has been 5%. Calculate Company C's cost of common equity. A)11.0% B)5.0% C)6.0% D)1.0% 6)E'Tech Ltd uses 280,000 units per year of a component in webcam production. The supplier takes 5 days to deliver the components to the company after receiving the orders of the component. The company operates 360 days per year, and maintains a minimum inventory level of 200 units of safety stock. At what level of inventory should the company place an order for the component? A)980 units B)7,050 units C)4,089 units D)780 units

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