Sara just bought a stock for $250, and she expects to get a dividend of $50 and $100 for years one and two, respectively. Around how much should she expect to sell the stock in year 2? The required rate of return is 20%. Select one:

a. $269

b. $225

c. $200

d. $240

A project that provides annual cash flows of $4,300 for eight years with the initial cost of $22,670 today. Is this a good project if the required return is 11.5 percent? Select one:

a. No

b. Not enough information

c. Indifferent

d. Yes