The Marvel Company has experienced relatively high growth in earnings.

The expected growth rate in earnings for the next three years is 20%.

After the three years, the growth rate is expected to be a constant 6%.

The current dividend paid is $3.50 per share.

The expected return is 10%.

What is the fair market value of the stock today?

$132.94

$142.34

$142.94

$102.49

Question 21

4 Points

A firm evaluates all of its projects by applying the NPV decision rule.
A project under consideration has the following cash flows:
Year	Cash Flow
0	($28,300.00)
1	$12,300.00
2	$15,300.00
3	$11,300.00
What is the NPV for the project if the required return is 11 percent?

$3,461.37

$4,351.52

$4,361.37

$3,531.25

Question 22

4 Points

A project that provides annual cash flows of $16,900 for eight years costs $75,000 today.
What is the NPV for the project if the required return is 7 percent?

$25,914.94

$25,757.94

$29,514.90

$27,750.59