QUESTION 10 "Company F will have earnings per share of $5 this year and expect that they will pay out $2 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 13%. The value of Company F's stock is Note: Express your answers in strictly numerical terms. For example, if the answer is 5500, enter 500 as an answer." QUESTION 11 "An auto parts company is deciding whether to sponsor a racing team for a cost of $500000. The sponsorship would last for 5 years and is expected to increase cash flows by $150000 per year. If the discount rate is 7%, what will be the change in the value of the company if It chooses to go ahead with the sponsorship? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 12 "The owners of a chain of fast-food restaurants spend 560000 installing donut makers in all their restaurants. This is expected to increase cash flows by $13000 per year for the next 5 years. The discount rate is 5,3%. What is the net present value of installing the donut makers?"* Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 10 "Company F will have earnings per share of $5 this year and expect that they will pay out $2 of these earnings to shareholders in the form of a dividend. Company F's return on new investments is 10% and their equity cost of capital is 13%. The value of Company F's stock is Note: Express your answers in strictly numerical terms. For example, if the answer is 5500, enter 500 as an answer." QUESTION 11 "An auto parts company is deciding whether to sponsor a racing team for a cost of $500000. The sponsorship would last for 5 years and is expected to increase cash flows by $150000 per year. If the discount rate is 7%, what will be the change in the value of the company if It chooses to go ahead with the sponsorship? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer." QUESTION 12 "The owners of a chain of fast-food restaurants spend 560000 installing donut makers in all their restaurants. This is expected to increase cash flows by $13000 per year for the next 5 years. The discount rate is 5,3%. What is the net present value of installing the donut makers?"* Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an
