Question
A project has an initial cost of $5,700. The cash inflows are $800, $2,400, $1,800, $800, and $1500 over the next five years, respectively. What
A project has an initial cost of $5,700. The cash inflows are $800, $2,400, $1,800, $800, and $1500 over the next five years, respectively. What is the payback period?
3 years
2 years
5 years
1 year
4 years
Leo Messi Corp. recently pays dividends. Future dividends are projected at $2, $3, and $4 over the next three years, respectively. Beginning four years from now, the annual dividend is expected to grow at 5% annually forever. What is one share of this stock worth to you today if you require a 11 percent rate of return on similar investments?
| $74.9 |
| $22.88 |
| $50.62 |
| $58.34 |
| $20.09 |
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