Questions: 1. What is the market value of a stock that will pay a $3 dividend next year, assuming ongoing 6% growth and a 14% discount rate. 3 points 2. What is the required return on a $65 stock that just paid a $7 dividend, assuming 5% growth. 3 points 3. What is the dividend yield on an $80 stock that will pay a $2.50 dividend next year, assuming 6% growth. 2 points 4. A firm with annual earnings of $1.8 million has 1 million shares outstanding. Peer companies have an average price-earnings ratio of 7.5. What is the value of one share of stock? 2 points 5. A project has an initial cost of $50,000 and a market value in present value terms) of $45,000. What is the NPV? 3 points 6. The IRR of a project is 12.2%. What is the NPV of the project's cash flows, discounted at 12.2%? 3 points 7. T/F The NPV profile illustrates how changes in the discount rate affect IRR. 2 points 8. T/F IRR and NPV are both measures of the value created by a project, in excess of the required return. 2 points