QUESTION 13 Aaron Inc. has 419 million shares outstanding. It expects earnings at the end of the year to be $650 million. Aaron pays out 50% of its earnings in total: 35% paid out as dividends and 15% used to repurchase shares. The firm's equity cost of capital is 10%. If Aaron's earnings are expected to grow at a constant 6% per year, what is Aaron's share price? a. $38.84 O b. $29.02 c. $13.51 O d. $19.39 QUESTION 14 The Wayne Corp. is planning on investing in a new project. This will involve the purchase of some purchase of some new machinery costing $55,000. The Wayne Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $20,000 $22,500 $27,500 $20,000 The appropriate discount rate for this project is 10%. The net present value (NPV) for this project is closest to: a. $14.032 b. $13.449 c. $19,674 d. $16.098