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What is the profitability index of an investment with cash flows in years 0 thru 4 of -8,000, 2500, 3,600, 2,200, and 3,000, respectively, and
What is the profitability index of an investment with cash flows in years 0 thru 4 of -8,000, 2500, 3,600, 2,200, and 3,000, respectively, and a discount rate of 13 percent? Select one: O A. 9 percent B. 5 percent C. 15 percent D. 8 percent vvv: Ocean Co. just paid a dividend of OR 3 per share out of earnings of OR 8 per share. If the book value per share is OR 18, what is the expected growth rate in dividends (g)? Select one: O A. 28 percent B. 38 percent C. 16 percent O D. 44 percent P Flag question If the cash flows for project A are Co = -3,000, C, = +500; C, = +1,500; and C2 = +5,000, calculate the NPV of the project using a 12 percent discount rate. Select one: o A. OR 2,201 O B. OR 5,000 C. OR 1,875 O D. OR 3,201 Will Co. is expected to pay a dividend of OR 7 per share at the end of year 1(Div.), and the dividends are expected to grow at a constant rate of 3 percent forever. If the current price of the stock is) OR 25 per share, calculate the expected return or the cost of equity capital for the firm. Select one: A. 40 percent B. 28 percent C. 31 percent O D. 12 percent Music Company is considering investing in a new project. The project will need an initial investment of OR 150,000 and will generate OR 40,000 (after- tax) cash flows for seven years. Calculate the NPV for the project if the cost of capital is 9 percent. Select one: A. OR 15, 935 B. OR 40,000 C. OR 51,200 D. OR 67,870
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