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Use the cash flows and competitive spreads shown in the table below Assumte the dividend payout ratio each year is 100% depreciation over 10 years

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Use the cash flows and competitive spreads shown in the table below Assumte the dividend payout ratio each year is 100% depreciation over 10 years and a cost of capital of 10%. (Negotive onswers should be indicated by a minus sign. Leave no cells bienk - be certein to enter " 0 " wherever required. Do not round intermediate colculations. Enter your income onswers in milifons rounded to 2 decimal pleces and enter the cate of return es a percent rounded to 2 decimal ploces.) Answer is not complete. \begin{tabular}{|c|c|c|c|} \hline Period & \begin{tabular}{l} Book income \\ ( $ in millions) \end{tabular} & \begin{tabular}{l} Book rate of \\ return (%) \end{tabular} & \begin{tabular}{l} Economic \\ income ( S in \\ millions) \end{tabular} \\ \hline 0 & 00 & 00 & 00 \\ \hline 1 & (0.12) & (34.00) & (34.00) \\ \hline 2 & (46.00) & & \\ \hline 3 & (34.00) & & \\ \hline 4 & & & \\ \hline 5 & & & \\ \hline 6 & & & \\ \hline 7 & & & \\ \hline 8 & & & \\ \hline 9 & & & \\ \hline 10 & & & \\ \hline \end{tabular} b-1. What is the economic rate of return? (Do not round intermediate calculations. Enter your answer as o percent rounded to 2 decimal places.) Answer is complete and correct. \begin{tabular}{|l|r} \hline Economic rale of return & 10000 \% \\ \hline \end{tabular} b-2. Now compute the steady-state book rate of seturn (Roi) for a mature company producing polyzone. Assume no growth and competitive spreads. (Negative answers should be indicoted by a minus sign. Do not round intermediote colculations, Enter your answer os o percent rounded to 2 decimal ploces.)

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