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You are considering whether to invest in a company's common shares. The company is expected to pay is first cash dividend of $2.00 at the end of year one. The dividend is expected to grow by 30% in year 2 and 20% in year 3. No further growth in the annual dividend is expected after year three. Calculate annual dividends to the nearest penny ($0.01) per share. If your required return on investment is 15%, what is the maximum price that you'd pay for the stock? Select one: O a $20.22 O b. $20.59 Oc $19.43 O d. $21.02 O e $20.85 After you retire, you purchase an investment that will pay you $5,450 at the end of each month for 16 years. The investment is expected to earn a 6% annual return, compounding monthly. How much will you pay to purchase this investment? Select one O a $630,626.60 Ob $568,253,81 Oc $671,647.24 Od $656,509.47 O e $539,190.99 a You are reviewing a capital budget proposal. If your business purchases a delivery vehicle for $27,500, it will save the following after-tax cash flows: $11,000 for year 1, $8,500 for year 2, $5,500 for year 3, and $5,000 for year 4. What is the payback period for the proposal? Select one: O a 2.8 years Ob 2.9 years Oc 3.5 years O d. 3.1 years O e. 3.5 years A machine will cost $725,000. After six years of useful life, the machine will have no salvage value. The machine is placed into the 30% CCA asset class and qualifies for the Accelerated Investment Incentive. The company's cost of capital is 18% and its income tax rate is 25%. Calculate the present value of its CCA tax shield on Select one: O a $116,035 O b. $119,715 Oc$120,974 Od $110,511 O e. $121,921