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$2.10 share * Firm A's stock has an expected total retum = 9.2%. The last annual dividend Dividends growth rate = 2.6% annually. Dividend yield

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$2.10 share * Firm A's stock has an expected total retum = 9.2%. The last annual dividend Dividends growth rate = 2.6% annually. Dividend yield - ? A) 3.75% B) 4.20% C) 4.55% D) 5.25% E) 6.60% 36. Firm A's stock's dividend's growth rate 2.75% annually. Do $1.67. The dividend 6 years from now =? A) $1.88 B) $1.92 C) 51.97 D) $2.02 E) $2.05 37. Do- S5/share. Future dividend growth rate - 7%/ year. Stock price? When the required return = 16% A) S54.16 B) $61.07 C) $59.44 D) $32.74 38. If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous and exclusive use of the same piece of machinery. These projects are considered to be: A) independent. B) interdependent C) mutually exclusive. D) economically scaled. 39. A new machine will cost $750,000. The cash flows generated from this new machine are as follows: $350,000 in year one, $325,000 in year two, S150,000 in year three, and $180,000 in year four. Required rate of return is 8% (this is the rate). The payback period ? A) 4.04 years B) 3.02 years C) 2.93 years D) 2.50 years 40. Initial Outlay Cash Flow in Period 2 $1,546,170 $1,546,170 $4,000,000 $1,546,170 $1,546,170 The Internal Rate of Return (IRR) =? A) 10%. B) 18%. C) 20%. D) 24%

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