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Author Question: You are offered an investment that will pay you the cash flows shown in the table. The first cash ... (Read 103 times)

dmcintosh

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  • Posts: 517
on: Jul 10, 2018
You are offered an investment that will pay you the cash flows shown in the table. The first cash flow occurs in one year. The cost of the investment is 1,086.59 (today).
 
  What is the return on the investment?
 
  Year Cash Flow
  1 70
  2 70
  3 70
  4 70
  5 1,070
 
  A) 5
  B) 7
  C) 9
  D) 11
  E) 13

Question 2

A share of common stock has a current price of 82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 rate of return, what is the current dividend of this stock?
 
  A) 3.00
  B) 3.30
  C) 4.29
  D) 4.75
  E) 6.13


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asware1

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

A


dmcintosh

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  • Posts: 517
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

bitingbit

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Reply 3 on: Yesterday
Gracias!

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