Company X is expected to pay an year-end dividend of $8 a share on its common stock. After the dividend payment the stock is expected to sell at $100 per share. The required rate of return on the common stock is 20%. Then, calculate the current price of the stock. A share of common stock has an expected long-run constant dividend growth rate of 8%, and the most recent dividend D_0, was $4.00. The required rate of return on the common stock is 20%. Then, using the dividend growth model, calculate the current price of the stock. Company B's dividends are expected to grow at a constant rate of g (for ever). Current price of the stock P_0 is $40, D_1 = $1.20 and Rs = 9%. Then, calculate the constant growth rate" g." If the dividends on a preferred stock is $9 per year, and the required rate of return on the stock is 12%, then calculate the current price of the preferred stock. For Stock A, the cash dividend expected one year from now is $9 [D1]. The dividends are expected to grow at a constant rate of 4% per year for ever. The required rate of return on the common stock is 16%. Then calculate the current price of the stock using the dividend growth model. The following cash flows are given for the Project Z Calculate the following (a) NPV (net present value) at 12% discount rate (b) IRR (Internal Rate of Return) (c) The payback period for Project (Z) The following cash flows are give for the two mutually exclusive projects X and Y. The project X requires an initial investment of $12,000 in time '0'and project Y needs an initial investment of $10,000 in time '0'. (a) Calculate the NPV for each project using a discount rate of 12%. (b) State your accept/reject decision (c) What would be your accept/reject decision if they were to be independent projects? Winter Wear is considering a 5-year project with an initial cost of $211,000. The project will produce cash inflows of $56,500 a year over the life of the project. What is the net present value (NPV), if the required rate of return is 15.8 percent? A project has a required return of 14.25 percent. The project's initial cost is $13,000 and its cash flows are: year 1 = $3,800, year 2 = $8,000, and year 3 = $5,000. What is the project's IRR? The Candy Hut is considering a project with an initial cost of $6,500. The project will produce cash flows of: $2,000 in year 1, $2,200 in year 2, $2,400 in year 3, and $2,500 in year 4. What is the payback period