1. A company with a return on equity of 15% and a plowback ratio of 60% would expect a constant-growth rate of:
a. 4%
b. 9%
c. 21%
d. 25%
Explain/show work
2. If the irr for a project is 15 then the project's npv would be:
a. negative at a discount rate of 10%
b. positive at a discount rate of 20%
c. negative at a discount rate of 20%
d. positive at a discount rate of 15%
Explain