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q . 1 4 . A company paid an annual dividend of $ 1 . 4 9 per share last month. The company is planning
q A company paid an annual dividend of $ per share last month. The company is planning on paying $ $ and $ per share over the next three years, respectively. After that, the dividend will be constant at $ per share per year. What is the market price of this stock if the market rate of return is percent? Answer: $
q An investment requires an initial cash outflow of $ and it will bring in cash inflows of $ $ $ $ for the next four years, respectively. What is the internal rate of return IRR of this project?
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q A company is considering a project which requires an initial cash outflow of $ and it will bring in cash inflows of $ $ $ $ for the next four years, respectively. What is this project's the profitability index PI given a discount rate of
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q The company purchased an equipment at $ Two years later, the equipment is sold for $ The equipment is classified as fiveyear property for MACRS. The MACRS annual depreciation rates are for Years to respectively.What is the after tax salvage value of this sale at the year Company's tax rate is Round answers to two decimals, such as
q Your company is considering a new project of years. The initial investment on the the machine costs $ and will be depreciated on a straightline basis to zero over the project life. The machine will become worthless in the end. The project will brings in annual operating cash flow of $It also requires an additional investment in net working capital of $ initially, which will be fully recovered at the end of the project. The tax rate is The discount rate is Please compute the NPV of this project. Round answers to two decimals, such as
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