Which of the following investment decision rules will work


1. A stock currently has a zero growth dividend policy and just paid a dividend of $4/share. They will keep this policy for the next 10 years. Afterward, they will increase their dividends by 2.5%/year, indefinitely. R=14%. Calculate the stock price today.

30.48

31.56

29.17

10.70

None of the above.

2. Which of the following investment decision rules will work on all types of projects?

a. accounting returns

b. payback

c. net Present value (NPV)

d. Internal Rate of Return (IRR)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Which of the following investment decision rules will work
Reference No:- TGS02851073

Expected delivery within 24 Hours