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Section 3- Answer 3 of the following 4 questions (15 points eask) ive full credit 5. Gamma Corp, is expected to pay the following dividends

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Section 3- Answer 3 of the following 4 questions (15 points eask) ive full credit 5. Gamma Corp, is expected to pay the following dividends over the net fow ysae S5, $12, 18, and $1.80, Afterward, the company pledgss tomalvsi percent growth rate in dividends, forever. If the required retwn on the osko 1 percent, what is the current share priee 6. Quattro, Inc, has the following mutually exclusive projects wvwihabe, The company has historically used a four-year euoff for preojeets. The rees n is Ii percent.Cash Elat Year Cash Flow IA Cash Fou 1 4125,000 38,600 33,400 31,200 27,500 24,000 -182.000 15,700 18,300 23.900 26,200 32,100 Find the payback period for both Project A and for Project B, Find the NPV for Project A and for Project B. Which project, if any, should the company accept 7. A stock has returns for five years of 23 percent, -17 percent, 8 percet, 22 pencent, and 3 percent, respectively. What is the average return and standard deviation of this stock? Given the following information, what is the expected return and standard deviation of the returns on this stock? 8. State of Economy robability of State of Kate of Return Boom Normal Recession 20 70 ,10 21 13 -.09 Section 3- Answer 3 of the following 4 questions (15 points eask) ive full credit 5. Gamma Corp, is expected to pay the following dividends over the net fow ysae S5, $12, 18, and $1.80, Afterward, the company pledgss tomalvsi percent growth rate in dividends, forever. If the required retwn on the osko 1 percent, what is the current share priee 6. Quattro, Inc, has the following mutually exclusive projects wvwihabe, The company has historically used a four-year euoff for preojeets. The rees n is Ii percent.Cash Elat Year Cash Flow IA Cash Fou 1 4125,000 38,600 33,400 31,200 27,500 24,000 -182.000 15,700 18,300 23.900 26,200 32,100 Find the payback period for both Project A and for Project B, Find the NPV for Project A and for Project B. Which project, if any, should the company accept 7. A stock has returns for five years of 23 percent, -17 percent, 8 percet, 22 pencent, and 3 percent, respectively. What is the average return and standard deviation of this stock? Given the following information, what is the expected return and standard deviation of the returns on this stock? 8. State of Economy robability of State of Kate of Return Boom Normal Recession 20 70 ,10 21 13 -.09

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