Rambler common stock is selling for $50 per share and pays dividends annually. In one year, the dividend is expected to be $1. Dividends are expected grow at 8% per year, indefinitely. What are, respectively, the dividend yield on Rambler stock and the expected capital gains yield on Rambler stock?

A. 2%, 8%

B. 2%, 3%

C. 2.16%, 8%

D. 0%, 10%

WeSuck Vaccuum Cleaners Company is considering a new project which costs $45,000 upfront and has expected future cash flows of $25,000, $35,000, and $5,000 in years 1, 2, and 3, respectively. The required return for projects like this is 12%? Which of the following answers represents the project's NPV, PI and accept/reject decision?

A. NPV = 53,782, PI = 1.195, Accept

B. NPV = 8782, PI = 0.195, Reject

C. NPV = 8,782, PI = 1.195, Accept

D. NPV = 7841, PI = 1.174

Using a required rate of return of 12%, a project with conventional cash flows is found to have a NPV of $4,065. The project's IRR and PI could only be:

A. IRR = 8%, PI = .632

B. IRR = 16%, PI = .914

C. IRR = 11%, PI = 4.176

D. IRR = 18%, PI = 1.271

Bubbly Booze Corporation is considering a project which has, in year 1, EBIT of $9,500 and depreciation of $7,000, interest expense of $1,000, tax on EBIT of $1,000. What is the project's operating cash flow in year 1?

A. $500

B. $1,500

C. $15,500

D. $14,500