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You are considering an investment with the following cash flows. Your required return is 8%, you require a payback of 3 years and a discounted

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You are considering an investment with the following cash flows. Your required return is 8%, you require a payback of 3 years and a discounted payback of 4 years. If your objective is to maximize your wealth, should you take this investment? Year. Cash Flow 0 -50,000 1 20.000 2. 20,000 3 20.000 4 20,000 5 -50,000 Select one: O a. Yes, because both the payback and the discounted payback are less than 2 years. O b. Yes, because the payback is 25 years. O c. No, because the project cash flows are not conventional O d. Yes, because the discounted payback is less than 4 years. O e No. because the NPV is negative. The dividend on Simple Motors common stock will be OMR3 in 1 year OMR4.25 in 2 years, and OMR6.00 in 3 years. You can sell the stock for OMR100 in 3 years. If you require a 12% return on your investment how much would you be willing to pay for a share of this stock today? Select one: O a OMR85.66 O b. OMR81.52 O COMR91.30 O d. OMR77.24 o e OMR75.45 Suppose the Pale Hose Corp. is expected to pay a dividend next year of OMR2.25 per share. Both sales and profits for Pate Hose are expected to grow ata rate of 20% for the following 2 years and then at 5% per year thereafter indefinitely. Dividend growth is expected to match sales growth If the required return is 15%, what is the value of a share of Pale Hose! Select one a OMR26.00 b OMR COM d OMR2 SO OMR393

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