QUESTION 16 - Both MULTIPLE CHOICE

Acme Corporation's dividends have been growing, and will continue to grow, at a constant rate, g.Three years ago, the dividend paid wasD_-3= $4and the most recent dividend paid (three years later) wasD₀= $3.4295.Based on your knowledge of these two dividends, calculate the constant dividend growth rate, g.

A. 5.545%

B. -5.00%

C. 5.263%

D. -5.263%

QUESTION 17

Given the following set of cash flows, for a capital budgeting project, what is theNet Present Value (NPV)whenk = 0%?

Initial Investment (I) = $20,000

CF₁= $5,500

CF₂= $6,125

CF₃= $8,625

CF₄= $6,750

A. $27,000

B. $1,152.41

C. $7,000

D. $0.00