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33) Nile announced that they will pay their first dividend of $5 on their common stock in a year (Di) Analysts think dividends will grow
33) Nile announced that they will pay their first dividend of $5 on their common stock in a year (Di) Analysts think dividends will grow by 40% in year 2, by 30% in year 3, and by 20% in year 4 before settling into a constant growth rate of 10% in year 5 and beyond. What is the value of Nile's stock today based on this information if the required return is 14%? A. $178.35 B. $300.30 C. S259.23 D. $221.67 E. $200.18 34) Acme Inc. is considering a five-year investment that costs $300,000. The investment will produce cash flows of S60,000 each year for the first two years (t and t 2), S115,000 a year for each of the remaining three years (t -3, t-4, and t-5). The company has a weighted average cost of capital of 10 percent. What is the MIRR of the investment? A. 17.33% B. 12.82% C. 18.25% D. 14.51% E. 11.00%
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