1. The internal rate of return of a standard project is 7.75%, and the project's requried rate of return is 5.75%. The project has a payback of exactly 3 years. From these facts, what can we conclude about the NPV of this project?
2. Suppose a company currently pays an annual dividend of $2.96 on its common stock in a single installment, and management plans on raising this dividend by 4% per year indefinitely. If the required rate of return on this stock is 11%, what is the current share price?