QUESTION 10 A company had a current share price of $49.70, and the firm had 1,200,000 shares of stock outstanding. The company is considering an investment project that requires an immediate $7,600,000 investment but will produce cash flows of $2,100,000, $2,500,000, $3,200,000, and $3,900,000 in years 1 to 4, respectively. If the company invests in the project, what would the new share price be? The company's cost of capital is 8.5%. (Hint: consider how the project NPV affects the stock price) $51.52 $51.18 $50.87 $50.35 $51.78 QUESTION 11 A company has just made a dividend payment of $4.10 per share. The company anticipates that the dividend will increase by 5% annually. What is the maximum amount you should pay to purchase a share of the company's stock if your goal is to earn a 12% rate of return? $57.50 O $58.50 O $59.50 $60.50 $61.50