3. Consider a project with the following cash-flows: Time Cash-flow t=0 -10 t=1 2 t=2...

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3. Consider a project with the following cash-flows: Time Cash-flow t=0 -10 t=1 2 t=2 5 t=3 3 What is the project's internal rate of return? A. 0.00% B. 7.58% C. 12.21% D. 14.21% E. None of the above 4. A share is currently trading at 555.56 and is expected to pay out a dividend of 100 in exactly a year's time. Its dividends are expected to grow at a constant rate thereafter. What is the value of the annual growth rate if you know that the market capitalization rate is 15% per annum? A. -3% per annum B. 0% per annum C. 3% per annum D. 4% per annum E. 5% per annum 5. What is the beta of a portfolio that has invested 10% in the riskless asset and the remainder in the following shares (assuming the answer is rounded to the nearest 2nd decimal)? Share % Invested Beta 40% 2 Y 30% 1.5 Z 20% 1.2 A. 1.59 B. 1.49 C. 1.18 D. 0.75 E. None of the above

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