s. swit Company stock is selling for $32.60 a share based on a rate of return of 13.8 percent What is the amount of the next I dividend if the dividends are increasing by 2.4 percent annually? A. $2.71 B. $3.84 C. $3.72 D. $2.86 E. $2.78 oys is expected to pay an annual dividend of $1.58 next year. The stock is selling for $18.53 a share and has a total of 9.48 percent. What is the dividend growth rate? A. .95 percent B. 1.03 percent C. 1.28 percent D. .82 percent E. .66 percent and the dividend growth rate 40. Dry Sherry just paid its annual dividend of $1.78 per share. The required return is10.6 is 1.23 percent. What is the expected value of this stock five years from now A $20.19 B. $19.78 C. $22.06 D. $18.45 E. $20.44 41. Which one of the following statements is correct? A. The net present value is a measure of profits expressed in today's dollars. B. If the internal rate of retun equals the required return, the net present value will C. If the initial cost of a project is increased, the net present value of that project will also increase. D. The net present value is positive when the required return exceeds the internal rate of return. E. Net present value is equal to an investments cash inflows discounted to today's dollars. 42. The internal rate of returm is unreliable as an indicator of whether or not an investment should be accepted given which one of the following? A. One of the time periods within the investment period has a cash flow equal to zero. B. The initial cash flow is negative C. The investment has cash inflows that occur after the required payback period. D. The investment is mutually exclusive with another investment of a different size. E. The cash flows are conventional standing 43, Global International would like to spend $215,000 to expand its warehouse. However, the company has a tloan out increase the cash inflows by $60,000 in the first year, $140,000 in the second year, and $150,000 a year for the folowing 2 years. Should the firm expand at this time? Why or why not? A Yes; because the money will be recovered in 2.10 years B Yes; because the money will be recovered in 1.87 years C. Yes; because the money will be recovered in 1.69 years D. No; because the project never pays back E. No; because the money will not be recovered in time to repay the loan