Question
Summer Fun Corp. reported their recent dividends of $3.60. It was $2.70 five years ago. What is their dividend growth rate? A.) 10.77% B.) 7.28%
Summer Fun Corp. reported their recent dividends of $3.60. It was $2.70 five years ago.
What is their dividend growth rate?
A.) 10.77%
B.) 7.28%
C.) 5.92%
D.) 3.11%
How much is their current stock price given the required return is 8%?
A.) 123.75
B.) 240.17
C.) 95.44
D.) 183.32
34.) Summer Fun wants to see whether the company expansion project to Mexico can be profitable. They estimates it would cost $80,000 to build the stores over there and could produce $20,000; $24,000; $28,500; and $32,000 sales for the next 4 years, respectively. If they have 15% cost, how much is the NPV of this project?
A.) -3,550
B.) 6,228
C.) 5,280
D.) -7,426
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