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Deimos Aerospace has just paid a dividend of $8.00. Analysts believe that the long-term growth rate in earnings going forward will be 3.4% per annum.

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Deimos Aerospace has just paid a dividend of $8.00. Analysts believe that the long-term growth rate in earnings going forward will be 3.4% per annum. Assume that the firm's cost of equity capital is 11.2% per annum and there is no expected change in Deimos Aerospace's dividend payout ratio nor its return on new investments. Which of the following is closest to the best estimate of the Deimos Aerospace's value per share today? O a. $102.56 O b. $102.87 Oc $106.05 O d. $73.86 O e $102.27 O f. $109.35 O g. $104.11 O h. $107.94 You are evaluating two mutually exclusive projects: Project A and Project B. Both Project A and Project B are investment projects that each commence with initial up-front cash outflow followed by a series of constant annual cash inflows. Project A's IRR ("Internal Rate of Return") is 35%, while Project B's IRR is 30%. When present valuing the cash flows of the two projects using a discount rate of 20%, the two projects would have exactly the same positive NPV ("Net Present Value") as each other. Assume that both projects have identical risk levels. If the appropriate discount rate for projects of this level of risk is then O 10% per annum; both projects should be accepted 25% per annum; both projects should be rejected O 10% per annum; Project B should be accepted O 25% per annum; Project A should be rejected 25% per annum; both projects should be accepted O 10% per annum: Project A should be accepted O 10% per annum; both projects should be rejected 25% per annum; Project B should be accepted

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