1. Over the past five years, Westover Enterprises has paid increasing annual dividends of $.82, $.87, $.95, $1.10, and $1.12 a share. What is the average dividend growth rate?
A. 8.70 percent
B. 9.29 percent
C. 7.87 percent
D. 8.23 percent
2. A project that provides annual cash flows of $15020 for eight years costs $89575 today. What is the NPV for the project if the required return is 19 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
3. A project that provides annual cash flows of $13024 for eight years costs $82920 today. What is the NPV for the project if the required return is 7 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
4. If someone offered to pay you $5000 a year for five years and you earn 6 percent interest per year, how much would that be worth today?