a)

b)

c)

Jumbo Transport, an air-cargo company, expects to have earnings por share of $2.50 in the coming year. It decides to retain 30% of these earnings in order to pase new aircraft. The return on this investment will be 25%. If its equity cost of capital is 14% what in the expected share price of Jumbo Transport? O A $26.92 OB. $2154 OC $16.15 OD $18.84 Term in years: 2 10 30 Rate: 2.25% 3.125% 3.5% 4 375% The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. If an investment offers a risk-free cash flow of $81,000 in thirty years' time, what is the present value (PV) of that cash flow? O A $22,418 OB. $17,934 O G. 531,385 OD. $26,901