36) The Garden Shoppe has adopted a policy of increasing its annual dividend at a constant rate of 1.35 percent annually. The company just paid its annual dividend of $1.84. What will the dividend be nine years from now? 36) A) $2.08 B) $2.05 C) $2.15 D) $2.02 E) $2.10 37) Nu-Tek has preferred stock outstanding that pays a cumulative $1.50 dividend per quarter. This company has not paid any of its dividends for the past two quarters. How much must be paid as a dividend for each share of preferred stock if the company plans to pay a dividend to its common shareholders this upcoming quarter?

37) A) $6.00 B) $4.50 C) $1.50 D) $3.00 E) $0 7 38) Currently, a firm has a benchmark PE of 11.7 and an EPS of $3.20. Earnings are expected to grow 3.2 percent annually. What is the implicit rate of return?

38) A) 3.67 percent B) 4.08 percent C) 4.23 percent D) 3.20 percent E) 2.89 percent 39) A project has a net present value of zero. Which one of the following best describes this project?

39) A) The project's cash inflows equal its cash outflows in current dollar terms. B) The project requires no initial cash investment. C) The project has no cash flows. D) The project has a zero percent rate of return. E) The summation of all of the project's cash flows is zero.

40) Which one of the following methods predicts the amount by which the value of a firm will change if a project is accepted? 40) A) Net present value B) Payback C) Internal rate of return D) Profitability index E) Discounted payback

41) A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called? 41) A) Accounting return B) Discounted payback C) Net present value D) Profitability index E) Payback value 42) The length of time a firm must wait to recoup the money it has invested in a project is called the:

42) A) valuation period. B) profitability period. C) discounted cash period. D) internal return period. E) payback period.