Ackert Company's last dividend was $3.00. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (r s) is 12.0%. What is the best estimate of the current stock price? Do not round intermediate calculations. a. $88.92 b. $68.84 c. $80.31 d. $78.88 e. $71.71

1. Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life. Under the new tax law, the equipment is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The equipment would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, additional net operating working capital (NOWC) would be required, but it would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

   WACC	10.0%
   Equipment cost	$70,000
   Required net operating working capital (NOWC)	$10,000
   Annual sales revenues	$61,000
   Annual operating costs	$30,000
   Expected pre-tax salvage value	$5,000
   Tax rate	25.0%

   	a.	$5,650
   	b.	$378
   	c.	$8,521
   	d.	$344
   	e.	$2,543