Question
Answer this question base on the following 3 statements: 1. Even if the porifability index of a project is greater than zero, it may still
Answer this question base on the following 3 statements:
1. Even if the porifability index of a project is greater than zero, it may still have a negative NPV.
2. Cash flows with different risk profiles would likely have different discount rates
3. The IRR and NPV may yield that same conclusion about a project except when the project is short term
A) 1 and 2 is correct
B) 2 and 3 is correct
C) 1 and 3 is correct
D) All statements are correct
E) All statements are not correct
Alexion Airlines is expected to pay dividend of 3839$ in the coming year. Dividends are expected to decline at the rate of 2.6% per year. The risk free rate of return is 6% and the market risk premium is 7.9%. The stock of Alexion airlines company has a beta of -0.15. At which prices should the stock be trading at today?
The price of the stock is ______$
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