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6. Pettway Inc. is considering Projects S and I, whose cash flows are shown below These projects are mutually exclusive, qually risky and not repeatable

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6. Pettway Inc. is considering Projects S and I, whose cash flows are shown below These projects are mutually exclusive, qually risky and not repeatable It the decision is made by choosing the project with the higher how much value will be foregone? Note that onder some conditions choosing projects on the basis of the will cause 50.00 value to be lost. NACC - 12 Yeart CT CH 0 1 51023375 -32,159 5750 $380 5759 3335 5761 530 5777 a $15.52 $21.95 c. 528.02 dl 3.69 c. 337.99 1.27.52 . . 4. Dabaon Dairies as capital structure consisting of cot debt and CORO stock The companys has obtained the following normation: The current before-tax Ytx on the company's hands is The company's common stock is expected to pay a 33.00 dividend at year and $3.001 and the dividend is expected to grow at constant rate of 7 year. The common stock currently sells for 360 share Assume the firm will be able to une retained earnings to fund the equity portion of its capital budget The company tax rate is 401 What is the company's MACC . a 76 8.98 6:51 d. 70 9.50 8. Kirkland Motors to 1 ampted to pay $2.00 -end disden DE 52.00) The stock's Intrinsie value today and constant growth rate Formula 520.00 a shares The required rate return on the company's stok 12 0.12 Tondividend is expected to grow at some constant rate over time as the expected stock price tive years from Now that is what is 521.65 3223 525. 33525 8. Kirkland Motors' stock is expected to pay $2.00). The stock's intrinsic value toc formula is $20.00 a share. The required stock is 12% (1. - 0.12). . The dividend constant rate over time. What is the expec now, that is, what is ? a. $21.65 b. $22.08 c. $25.64 d. 535.25 e. 536.78

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