What is the sum of the present values of the following cash flows at 13 percent annual rate of return? (Hint: Calculate the PV of each cash flow and add or subtract depending on the sign of the cash flow.)

Year 0 1 2 3 4 5 Cash Flow -750 450 350 150 125 -100 A. 48.68

B. 37.37

C. 60.27

D. 26.33

E. 72.15

F. 15.56

5 points

Question 12

1. You purchased a stock for $20 per share. The most recent dividend was $2.50 and dividends are expected to grow at a rate of 8% indefinitely. What is your required rate of return on the stock?
2. A. 19.25%
3. B. 17.00%
4. C. 21.50%
5. D. 18.38%
6. E. 20.27%
7. F. 17.64%