Clorox has sales of $7.1 billion and costs of $4.6 billion. The company has 123 million shares outstanding. What is the price-sales ratio if the stock has a book value of $4.5 per share and a market value per share of $140?

2.29

2.12

2.43

1.92-not the answer

2,

Kellogg's just paid a dividend of $2.33. If its required return and growth rate are 6.42% and 3.02%, respectively, its stock price will be

$70.60-not the answer

$68.53

$66.52

$72.93

3.

The net present value:

decreases as the required rate of return increases.

ignores cash flows that are distant in the future.-=====not the answer

is equal to the initial investment when the internal rate of return is equal to the required return.

is unaffected by the timing of an investment's cash flows.

4

Joe and Rich are both considering investing in a project that costs $28,050 and is expected to produce cash inflows of $17,380 in Year 1 and $16,830 in Year 2. Joe has a required return of 12.5 percent, but Rich demands a return of 8.5 percent. Who, if either, should accept this project?

Rich, but not Joe

Both Joe and Rich

Neither Joe nor Rich====not the answer

Joe, but not Rich