Calculate the value of a company's stock today, given the following information:

expected earnings per share for the next year= $2.00

expected dividend payout ratio for the next year = 40%

constant dividend growth rate= 8%

return requirement on stock= 12%

a) $20.00

b) $30.00

c) $50.00

d) $32.40

e) $21.60

Your company is expanding, and as a result expects additional operating cash flows of 30,000 a year for 4 years. This expansion requires $50,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires an additional $3,000 of net working capital throughout the life of the project; your company expects to recover this amount at the end of the project. What is the net present value of this expansion project at a 15% required rate of return?

a) $34,793

b) $34,365

c) $35,649

d) $29, 416

e) cannot calculate NPV as no tax rate is given in the question

f) $32,410

Your company has a debt-equity ratio of 70%, a total asset turnover of 1.5, and a profit margin of 10%. The total equity is $500,000. What is the amount of the net income?

a) $121,212

b) $127,500

c) $118,048

d) $120,202

e) $124,097

A company has a stock beta of 1.20. The expected market return is 10%, and risk-free rate is 2%. The company's next dividend is expected to be $2 per share, and dividends have been growing at a 4% annual rate. The stock is currently trading at $25 per share. If you invest in the stock now, what's the best estimate of your return?

a) 12.32%

b) 12%

c) 13.09%

d) 8.86%

e) 14%

f) 11.60%