A share of perpetual preferred stock pays an annual dividend of $6 per share. If investors require a 12 percent rate of return, what should be the price of this preferred stock?

A company intends to buy land today costing $200,000 and construct a building costing $264,200. The construction of the building is expected to be completed at the end of one year. The company expects that it will realize an increase in after-tax cash flows of $100,000 starting at the end of the second year and that this incremental cash flow will increase at an annual rate of 10 percent per year for 10 years. What is the approximate payback period?

The Phoenix Corporation encountered an investment opportunity that will yield end of year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's required rate of return is 10 percent. What is the NPV for this investment?