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  3. a. a corporation plans to pay a dividend of $4.50

A. A corporation plans to pay a dividend of $4.50 at the end of the...

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Finance

A. A corporation plans to pay a dividend of $4.50 at the end of the year. The dividend is then expected to grow at 15% for one year, at 17% for one year and then settle down to a long run growth rate of 6%. If investors require a return of 11% to hold the stock, what price should the stock sell for?

B. A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $750,000; Year 2 240,000; Year 3 - $375,000; Year 4 950,000; Year 5 978,000. What is the projects payback?

C. A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $750,000; Year 2 240,000; Year 3 - $375,000; Year 4 950,000; Year 5 978,000. What is the projects Profitability Index, given a 7% required rate of return??

D.

52 Weeks Yld Vol
Hi Lo Stock Sym Div % PE 100s Hi Lo Close Chg.
126.25 72.50 Big Hat BH 1.30 1.32 16 20925 98.38 97.88 98.13 -.27

Based on todays Closing Price of $98.13 and the change in price shown in the Table above, what price must a corporation shares have closed at yesterday?

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