You need to QI. our economist gave us following data: The growth rate is of the GDP. The latest EPS has been reported as $2. The beta of the company is 2. The MRP is 5%. Risk free rate (T-bond yield) is zero. The GDP is twice the rate of inflation. The rate of inflation is 1%. The fair value of this Q2. The fair value of a stock is computed as $11. The expected (estimated) EPS for next year is $1.10. The discount rale for this stock is 13%. The growth rate of this stock is .......... Q3. Today is Jan 1, 2017. All coupons are paid semiannual and FV = $1000. Fill out the missing parts (?) in the following table. Ignore a cell when it says "N/A" Trading Price Buy or Sell or Computed Maturity Date Jan 1, 2021 July 1, 2026 Dec. 31, 2031 Annual Coupon Annual Market Rate Price (fair value) 4% 6% 12% $1100 $1050 N/A Hold N/A Use the following info to answer question 4-5. The expected cash flow of a project for next year is $3,500,000 and it will increase by $350,000 each year for the following three years. Today is Jan 1, 2017. We want to replace an old asset that we had bought on Jan 1, 2014 for $900,000 with a SL depreciation life of five years . We can sell the old asset for 75% of its original price. A new asset can be purchased for $ 1,500,000. The tax rate is 34% Q4. The initial investment is Q5. Assuming the initial investment is $1,900,000 (all other info the same), the true NPV of this project, at 10% discount rate, is $ Use the following info for questions 6-7. Your daughter will go to a four-year college 10 years from now. You want to make sure you will have four years' worth of education cost. The current annual cost of education is $ 25,000 subject to a 5% annual rate of inflation. The investment opportunity is 10% each year paid monthly. Q 6. How much do you need 10 years from now? Answer Q 7. How much should you deposit each month to achieve this financial planning goal? Answer: Q8. How long would it take for $1,000,000 to triple (become 3 times more) if the annual compounding rate is 10%. Answer Q9. The monthly adjusted closing prices of Jan to July are $10, 12, 14, 16, 14 ,17, and 20 respectively. The annualized rate of return is QIO. Assume the monthly rate of return is 2%. The standard deviation is 12%. In this case the annual RISK/REWARD ratio is