Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.4 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,794,300, $1,847,600, $1,816,000, and $1,269,500 over these four years, what is the projects average accounting return (AAR)?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, for the next four years, respectively. The discount rate is 15 percent.

What is the discounted payback period for these cash flows if the initial cost is $6,300?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

What is the discounted payback period for these cash flows if the initial cost is $8,400?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

What is the discounted payback period for these cash flows if the initial cost is $11,400?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

An investment project provides cash inflows of $615 per year for eight years.

What is the project payback period if the initial cost is $1,750?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the project payback period if the initial cost is $3,400?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the project payback period if the initial cost is $5,100?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the payback period for the following set of cash flows?(Round your answer to 2 decimal places, e.g., 32.16.)

Year	Cash Flow
0	$	4,900
1		1,250
2		1,450
3		1,850
4		1,350

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.45 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each companys stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Stock price
Red, Inc.	$
Yellow Corp.	$
Blue Company

The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.25 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company's stock.

What is the current stock price?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current price

$

What will the stock price be in three years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$

What will the stock price be in 8 years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

$

The next dividend payment by Halestorm, Inc., will be $1.72 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $33 per share, what is the required return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

The next dividend payment by Halestorm, Inc., will be $1.52 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $28 per share.

What is the dividend yield?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield

%

What is the expected capital gains yield?(Enter your answer as a percent.)

Capital gains yield

Tell Me Why Co. is expected to maintain a constant 4.6 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.4 percent, what is the required return on the companys stock?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Moraine, Inc., has an issue of preferred stock outstanding that pays a $5.15 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Required return

%

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:

Year	Cash Flow
0	$	27,500
1		11,500
2		14,500
3		10,500

If the required return is 16 percent, what is the IRR for this project?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

IRR

%

Should the firm accept the project?

No

Yes