4.After paying a dividend of $1.90 last year, a company does not expect to pay a dividend for the next year. After that it plans to pay a dividend of 4.83 in year 2 and then increase the dividend at a rate of 5 percent per annum in years 3 to 6. What is the expected dividend to be paid in year 5? (to nearest cent; don't include $ sign)

Answer:

5.When evaluating capital projects, the decisions using the NPV method and the IRR method will agree if:

Select one:

A. the projects are independent.

B. the cash flow pattern is conventional.

C. the projects are mutually exclusive.

D. both a and b.

6. A company has just paid its annual dividend of $3.40 yesterday, and it is unlikely to change the amount paid out in future years. If the required rate of return is 18 percent p.a., what is the share worth today? (to the nearest cent; dont include $ sign)

Answer: