Please answer them correctly. Here are short 3 problems. Pleasesolve all 3 problems. I would really appreciate your effort.Thanks.
1). Crane, Inc., is a fast-growing technology company.Management projects rapid growth of 30 percent for the next twoyears, then a growth rate of 17 percent for the following twoyears. After that, a constant-growth rate of 8 percent is expected.The firm expects to pay its first dividend of $2.56 a year fromnow. If dividends will grow at the same rate as the firm and therequired rate of return on stocks with similar risk is 18 percent,what is the current value of the stock? (Round allintermediate calculations and final answer to 2 decimal places,e.g. 15.20.)
Current Value ______?
2). Sandhill Corp. will pay dividends of $5.00, $6.25, $4.75,and $3.00 in the next four years. Thereafter, management expectsthe dividend growth rate to be constant at 5 percent. If therequired rate of return is 14.00 percent, what is the current valueof the stock? (Round all intermediate calculations andfinal answer to 2 decimal places, e.g. 15.20.)
Current Value ______?
3). Cullumber Corp. management is planning to spend $650,000 ona new marketing campaign. They believe that this action will resultin additional cash flows of $304,000 each year for three years. Ifthe discount rate is 17.5 percent, what is the NPV on this project?(Enter negative amounts using negative sign e.g.-45.25. Do not round discount factors. Round other intermediatecalculations and final answer to 0 decimal places, e.g.1,525.)
The NPV is ______?
