2.

You have an opportunity to invest $109,000 now in return for $79,100 in one year and $29,600 in two years. If your cost of capital is 8.8%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent.) Assume Highline Company has just paid an annual dividend of $0.92. Analysts are predicting an 10.2% per year growth rate in earnings over the next five years. After then, Highline's earnings are expected to grow at the current industry average of 5.5% per year. If Highline's equity cost of capital is 9.4% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Highline stock should sell? The value of Highline's stock is $ (Round to the nearest cent.)