36. $10 per share next year, and to grow at 4% per year what is the company's cost of equity capital (required rate of returm of equity)? : Sunshine Systems stock sells for Sos per share. It is expected to pay a dividend of A: 13.0% B:13.4% C:14.0% D: 18.7% agreement to pay interest at an annual rate of 18% compounding daily. If you repaid your friend after 90 days, how much would you need to repay 32: You have borrowed $1,000 from a friend to pay for unforescen ear repairs, with an A: $1,044.38 B: $1,045.00 C: $1,045.37 D: $1,043.56 33: How much must be invested today in order to generate a five-year annuity of $1,000 per year, with the first payment one year from today, at an interest rate of 129%? A: $3,604.78 B: $3,746.25 C: $4,037.35 D: $4,604.78 34: You have a choice between receiving $500 now and $530 in six months' time. Current interest rates are 10% p.a. (simple interest). As a rational investor, which option would you choose and why? A: $500 now, because receiving $530 in six months' time is equivalent to earning only 6% interest, whereas in the bank you can earn 10% interest. B: $530 in six months' time, because $500 invested for six months is only worth $525. C: $500 now, because it would be worth $550 in six months' time. D: $500 now, because you have the option to invest or consume goods. 35: Assuming that cash flows are received evenly throughout the year, what is the payback p.a. for the next five years? period for a project with an initial outlay of $15,000 and cash flows of $4,000 A: 2.75 years. B: 3.25 years. C: 3.75 years. D: 4.25years