AaBbccl. AaBbcc AaBbcc AaBb AaBbcc AaB 1 Normal YUU_List 1 No Spac... Heading 1 Heading 2 Title Paragraph 2 Styles 5 3. (a) ABC company has adopted a policy of increasing the annual dividend on their common stock at a constant rate of 3.75% annually. The firm is paying an annual dividend of $1.10 today. What will the dividend be five years from now? (b) What do you think is the trade-off for preferred shareholders to not having the privilege of voting rights. 4. (a) An initial investment of $120,000 is expected to generate annual cash inflow of $30,000 for 6 years each. Depreciation is allowed on the straight-line basis and the salvage value at the end will be $5000. What will be its average accounting rate of return. Would you like to invest in this project if you have borrowed money at 5%, explain? (b) What would be the payback period, if for the same investment in Part (a). your cash inflow is $25,000 $25,500, $30,000, $15000, $20000, $30,000. 5. (a) Which company would you like to invest your money in based on Beta values and why? Explain in detail with the help of 2 hypothetical values of Beta. (b) What required return do you desire for an asset with a beta of 1.2, a risk-free rate of 6% and a market return of 15%. Dros