QUESTION-7 Youve collected the following information from your favorite financial website.

52-Week Price		Stock (Dividend)	Dividend Yield %	PE Ratio	Close Price	Net Change
Hi	Lo
77.40	10.43	Acevedo .36	2.6	6	13.90	.24
55.81	33.42	Georgette, Incorporated 1.54	3.8	10	40.43	.01
131.01	69.90	YBM 2.40	2.7	10	89.05	3.07
50.24	13.95	Manta Energy .80	5.2	6	15.43	.26
35.00	20.74	Winter Sports .32	1.5	28	??	.18

According to analysts, the growth rate in dividends for YBM for the next five years is expected to be 19.5 percent. Suppose YBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5 percent, indefinitely. Assume investors require a return of 14 percent on YBM stock. According to the dividend growth model, what should the stock price be today?

1. Mendez Company has identified an investment project with the following cash flows.

Year	Cash Flow
1	$ 1,030
2	850
3	1,460
4	1,820

A)If the discount rate is 10 percent, what is the present value of these cash flows?

Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

B)What is the present value at 18 percent?

Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

C)What is the present value at 24 percent?