22&23

A firm's stock has a required return of 12%. The stock's dividend yield is 5%. Calculate the capital gains yield or dividend growth rate. What dividend will the firm pay in two years if the current stock price is $50? O $2.18 O $2.34 O $2.50 O $2.68 O $3.50 Assume the project below has a payback period of 2 years. What is its IRR? Year 0 ? Year 1 $5 Year 2 $4 Year 3 $3 O 10% O 12.5% O 15% O 17.5% O 20%