Questions: (Each question have equal weights) 1. East stage has just paid a dividend of $2 per share the growth rate will be %10 for the next 2 years, but after the dividends will grow at a constant rate of %5 forever. If the required rate of return is % 15 what should be the price of West Stage shares? 2. Calculate the net present value (NPV) of the following project. Assume that the cost of capital, is %10. Y 0 1 2 3 Project A (in dollars) - $50.000 30.000 25.000 20.000 3. Sun Co's bonds, maturing in 7 years, pay 4 percent interest on a $1000 par value. Interest is paid annually. If your required rate of return (market interest rate) is %6, what is the value of the bond? What happens if market interest rate rises? Explain the reason. atement of cash flow for the rear of 2010