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Consider the following project: Year 0: ($10,000); Year 1: $6000; Year 2: $4000; Year 3: $5000; Year 4: $2000; r = 10% What is the

Consider the following project: Year 0: ($10,000); Year 1: $6000; Year 2: $4000; Year 3: $5000; Year 4: $2000; r = 10%

What is the discounted payback of this project?

What is the PI of this project?

What is the IRR of this project?

A common stock is selling for $42 per share. The stock just paid a dividend of $2. The required rate of return on this stock is 10%. What is the growth rate of this stock?

A young woman currently has $20,000 saved in an account earning 7 percent per year. She also plans to save $3000 a year for the next 40 years (earning 6 percent year year). How much money will she be able to spend every year in retirement if she deposits all of the money she saved into an account earning 4 percent per year and she plans to live 30 years after retirement?

The optimal capital structure for a company is 35% Debt, 20% Preferred Stock, and 45% common equity. The firms tax rate is 48%. The companys debt has a beta of 0.3. The market risk premium is 6.8%, and the risk-free rate of interest is 3.2%. The companys preferred stock is priced at $75 and has a dividend of $6.80. The companys stock has a beta of 1.9. What is the weighted average cost of capital for this company.

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