1. Big Baller Brand earned $5 million in net income last year and for the first time paid its common stockholders a dividend of $.25 per share. The firm has 4 million shareholders. What is the companys payout ratio?

   		50%
   		20%
   		33%
   		75%

2. Project Alpha requires an initial outlay of $500,000 and has a profitability index of 1.5. The project is expected to generate equal annual cash flows over the next twelve years. The required return for this project is 18%. What is project Alphas net present value? Round to the nearest 1,000.

   		$165,000
   		$170,000
   		$185,000
   		$200,000