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4. Our company forecasts to pay OMR 8 dividend next year, which represents 100% of its earnings. This will provide investors with 7% expected return.

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4. Our company forecasts to pay OMR 8 dividend next year, which represents 100% of its earnings. This will provide investors with 7% expected return. Instead, we decide to plowback 25% of the earnings at the firm's current return on equity of 13%. What is the value of the stock after the plowback decision? 5. If the cash flows for project Z are CO = -1,200; C1 = 600; C2 = 800; and C3 = 2,000, calculate the payback period for the project. 6. How much will accumulate in an account with an initial deposit of OMR 500, and which earns 4% interest compounded quarterly for ten years

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