Valley Inc. is expected to pay a dividend of $2.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 3.2% per year in the future. The companys beta is 1.40, the market risk premium is 5.50%, and the risk-free rate is 2.50%. What is the companys current stock price?

		$23.81
		$28.57
		$62.50
		$29.49

ABC Inc. is considering the purchase of a new machine for $130,000, installed. This machine is included in CCA class 8 (20%). The firm expects to the machine to have a salvage value of zero after six years. Determine the present value of the CCA tax shield if the firm' s marginal tax rate is 25%, its weighted average cost of capital (WACC) is 6% and the firm has other equipment in the asset class. Assume that the half-year rule applies.

		$19,090.91
		$25,000.00
		$24,292.45
		$14,035.64