-y . A -t= 2.-. | 1 Normal 11 No spac Heading 1 Heading 2 Title Font Paragraph Styles the cost of capital is 12 percent, calculate the current price per share of the stock s are para out as arviaends, a sume General Electric (GE) has about 12.2 billion shares outstanding and the stock price is $42 30 Also assume the P/E ratio is about 17.5x Calculate the approximate market capitalization for GE 7. If the cash flows for Project M are Co -1,200, Ci +400; C2-+750; and Ca the IRR for the project. +900, calculate 8. Music Company is considering investing in a new project. The project will need an initial investment of $2,200,000 and will generate (after-tax) annual cash flows of $1,250,000 for three years. Calculate the NPV for the project if the cost of capital is 13 percent 9. A company has $10,000,000 of revenue today. It is estimated to grow 25% next year, 22% the following year and 15% the third year. What is the CAGR? 10. You buy a share of Make Money, Inc. stock for $25.00 and receive a dividend of $1.25 You sell the stock for $27.50 the next year. What is your total return