8:Madison Industries stock currently sells for $12 per share. The stock just paid an annual dividend of $1.50per share (i.e., Do = $1.50). The dividend is expected to grow indefinitely at 7% per year. Use the dividendgrowth model to answer the following questions. Show your answers to the nearest 0.1%.a. What is the required rate of return on Madison's stock?b. How much is the expected dividend yield?c. How much is the expected capital gains yield?d. What is the expected stock price one year from now?

olem 9: division of Catamount, Inc. is considering two investment projects, each of which requires an up-front expenditure of $34 million. The projects are independent. Your estimate of the net cash flows for each project (including the initial investment) are as shown: Year Project A Project B 0 $34,000,000 -$34,000,000 7,000,000 22,000,000 IN 12,000,000 12,000,000 3 22,000,000 8,000,000 a. Fill in the table below showing the net present value (NPV) for each project assuming the cost of capital (the discount rate) is 7% or 10%: Cost of Project A NPV Project B NPV Capital 7% 10% b. What is the internal rate of return (IRR) for each project: Project A IRR: Project B IRR: C. Assume Catamount's cost of capital is 10% and there is no capital rationing (i.e., no limit on total capital spending). Should Catamount accept Project A, Project B or both projects? Why