Given the following cash flows calculate the IRR:

Year 0	1	2	3
-6000	2000	2000	2000

0.0%

-23.24%

15.89%

Given the following cash flows and a discount rate of 13 percent, calculate the NPV.

Year 0	1	2	3	4	5
-75000	25000	27500	30000	32500	35000

$28,381.29

$57,743.36

$75,000.00

DBP Inc. just paid a dividend of $1.00. The expected growth rate of dividend is 8 percent. The required return for investors in the first three years is 20 percent and 15 percent for the following three years. After those six years the required return is 10 percent. What is the current share price of the stock?

$36.98

$29.91

$28.94

Ernie Manufacturing has projected sales of $155 million next year. Costs are expected to be $100 million and net investment is expected to be $17.5 million. Each of these values is expected to grow at 14 percent the following year, with the growth rate declining by 2 percent per year until the growth rate reaches 6 percent where it will remain. There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current stock price?

$47.39

$43.59

$14.43