-TransTech is expected to pay no dividends for the next two years. After that, it will pay a dividend of $2 at the end of each of the next three years. Subsequent dividends are expected to grow at the rate of 5 percent per year for ever. If the investor's required rate of return from this stock is 11 percent, what is the price of the stock today?

A. $30.48 B. $27.44 C. $24.74 D. $22.68 E. $22.29

-You are evaluating two mutually exclusive projects for FinCo, with the following net cash flows:

Project X: (year0) -$100,000; (year1) 45,000; (year2) 35,000; (year3) 30,000; (year4) 25,000; (year5) 35,000

Project Z (year0) -$100,000; (year1) 25,000; (year2) 28,000; (year3) 31,000; (year4) 32,000; (year5) 45,000

If FinCo's cost of capital is 14%, you would choose:

a. Neither Project. b. Project X. c. Project Z. d. Both projects.