1. NewCompany's stock current sells for $17.50 a share. It just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow at a constant rate of 6.25% a year. What stock price is expected 1 year from now?
2. NewCompany's stock current sells for $17.50 a share. It just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow at a constant rate of 6.25% a year. What is the required rate of return?
3. NewCompany has perpetual preferred stock outstanding that sells for $27.50 a share and pays a dividend of $1.25 at the end of each year. What is the required rate of return?
4. Project X has an initial cost of $88,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 6.25%. What is the project's NPV?
5. Project X has an initial cost of $88,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 6.25%. What is the internal rate of return (IRR) for Project X?
6. Project X has an initial cost of $88,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 6.25%. What is the modified internal rate of return (MIRR) for Project X.