Question #3 only

Stars Inc., is a fast-growing technology company. The firm projects a rapid growth of 40% for the next two years and then a growth rate of 20% for the following two years After that the firm expects a constant-growth rate of 8%. The firm expects to pay its first dividend of $1.25 a year from now. If your required rate of return stocks is 20%. what is the current price of the stock? A $ 4.70 B $ 15.63 C $22.68 D $30.30 INFORMATION BELOW APPLY TO THE 2 PROBLEMS/QUESTIONS THAT FOLLOW: J-Corp. is adding a new assembly line at a cost of $8.5 million. The firm expects the project to generate cash flows of $2 mil, $3 mil, $4 mil, and $5 mil. over the next 4 years. Its cost of capital is 16%. What is the net present value (NPV) of this project? A $ 645, 366 B $ 777, 713 C. $ 905, 888 D $ 1, 213, 909 What is the internal rate of return (IRR) that Jamaica can earn on this project? (Round to the nearest) A. 17% B. 18% C. 19% D. 21% BCB Inc., purchased machinery from a Japanese firm and will have to pay Japanese Yes yen 278.45 million in 90 days. The bank quotes a forward rate of yen 105 46/$ to buy the required yen What is the cost to BCB in U.S. dollars? A. $2, 640, 338 B $2, 784, 500 C $2, 936, 534 D $2, 714, 300 5. A 20-year bond with a par value of $1,000 has a 9% annual coupon. The bond currently sell for $925. If the bond's yield to maturity remains at its current rate, what will be the price of the bond 5 years from now? A. $ 966.79 B $ 831.35 C $ 1.090.00 D $ 933.09