AaBbccbdEe AaBbCcDc AaBbc Normal No Spacing Heading 1 Headi Capello's Deli traditionally pays an annual dividend of $1.65 per share. The firm is projecting dividends of $1.80 and $2.05 over the next two years, respectively. After that, the company expects to pay a constant dividend of $2.25 a share. What is the maximum amount you are willing to pay for one share of this stock if your required return is 10 percent? Show your steps a. $19.87 b. $20.29 c. $21.93 d. $23.73 e. $24.12 The Plush Toy Co. is considering a new toy that will produce the following cash flows. Should the company produce this toy based on its internal rate of return if the required return is 10 percent? Show your steps Cash fle Year 0 1 2 3 -$150,500 $46,200 $18,700 -$39,100 $166,300 a. yes; the project's rate of return is 11.90 percent b. yes; the project's rate of return is 21.03 percent c. no; the project's internal rate of return is 8.23 percent d. no; the project's rate of return is 9.48 percent e. The project's rate of return cannot be determined as the cash flows are unconventional The condominium at the beach that you want to buy costs $249,500. You plan to make a cash down payment of 20 percent and finance the balance over 10 years at 6.75 percent. What will be the amount of your monthly mortgage payment? Show your steps a. $2,291.89 b. $2,809.10 c. $3,287.46 d. $3,412.67 e. $4,145.68 .. A net present value of zero implies that an investment: Comment on your answer a. has no initial cost. b. has an expected return that is less than the required return. c. should be rejected even if the discount rate is lowered. d. never pays back its initial cost. e. is earning a return that exactly matches the requirement