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7 & 8 please! show readable work please! thank you 7. (15 percent) Bayou Okra Farms just paid a dividend of $3.20 on its stock.

7 & 8 please! show readable work please! thank you image text in transcribed
7. (15 percent) Bayou Okra Farms just paid a dividend of $3.20 on its stock. The growth rate in dividends is expected to be a constant 7 percent per year indefinitely. Investors require a return of 14 percent for the first three years, a return of 12 percent for the next three years, and a return of 10 percent thereafter. What is the current share price? 8. (15 Percent) A firm's WACC is 12%, and it is considering Projects X and Y, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO wants to use the IRR criterion, while the CFO favors the NPV method. You were hired to advise the firm on the best procedure. If the wrong decision criterion is used, how much potential value would the firm lose? Please give your suggestions based on your analysis

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