31.1.YouRock Nippster has a required rate of return of 13.4%.The company is experiencing a highly abnormal growth rate of 30%.This growth rate is expected to continue for three years.After year three, the growth rate is expected to return to a normal 8% and remain constant forever.If the company's last paid dividend was $1.15 what would be the market value (P₀) for this supernormal growth rate stock?

(Points : 4)

$25.32

$33.42

$39.21

The question cannot be answered with the information given above

Question 32.

32.1.Use the information given here to answer questions 32 and 33:

CoveAuklaOoglu, Inc. is considering a project which has net cash flows (the same as free cash flows) given below:

YearCF ($)

0-1,000 (Initial Outlay)

1500

2400

3300

4100

Given that the company's WACC is 10%, what is the company's NPV?

(Points : 3)

$78.82

$109.45

$49.18

$54.06

Question 33.

33.1.Garrod Dickens wants to calculate the IRR for the above project for CoveAuklaOoglu, Inc.His answer based on the cash flows given in the previous question would be:

(Points : 3)

11.8%

14.5%

12.45%

13.02%