QUESTION 25 A company has a project that costs $75 today and generates a cash inflow of $2.50 in six months. After six months, management expects the cash inflow to grow at an annualized rate of 8% with semi-annual compounding and for this project to continue generating cash inflows in semi-annual increments forever. The company's cost of capital is 12% APR with semi- annual compounding. What is the NPV of this project? Your final answer must be rounded to the nearest dollar, only numeric, and exclude the dollar sign. Rounding examples: 1.49 would be rounded to 1 and 1.50 would be rounded to 2. QUESTION 26 A company pays dividends in annual increments, with the next dividend expected to be paid in one year. Today, when the market opened the CFO of a company provided the following guidance: Current book value of equity per share: $10 Return on equity in perpetuity: 15% Payout ratio in perpetuity: 75% Investor's in this company have a cost of equity of 10% APR with annual compounding. If investors price this company based on management's guidance, what would be this company's share price today? Your final answer must be rounded to the nearest dollar, only numeric, and exclude the dollar sign. Rounding examples: 1.49 would be rounded to 1 and 1.50 wo uld be rounded to 2. QUESTION 25 A company has a project that costs $75 today and generates a cash inflow of $2.50 in six months. After six months, management expects the cash inflow to grow at an annualized rate of 8% with semi-annual compounding and for this project to continue generating cash inflows in semi-annual increments forever. The company's cost of capital is 12% APR with semi- annual compounding. What is the NPV of this project? Your final answer must be rounded to the nearest dollar, only numeric, and exclude the dollar sign. Rounding examples: 1.49 would be rounded to 1 and 1.50 would be rounded to 2. QUESTION 26 A company pays dividends in annual increments, with the next dividend expected to be paid in one year. Today, when the market opened the CFO of a company provided the following guidance: Current book value of equity per share: $10 Return on equity in perpetuity: 15% Payout ratio in perpetuity: 75% Investor's in this company have a cost of equity of 10% APR with annual compounding. If investors price this company based on management's guidance, what would be this company's share price today? Your final answer must be rounded to the nearest dollar, only numeric, and exclude the dollar sign. Rounding examples: 1.49 would be rounded to 1 and 1.50 wo uld be rounded to 2