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Author Question: Project LMK requires an initial outlay of 500,000 and has a profitability index of 1.4. The project ... (Read 138 times)

ETearle

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on: Jul 10, 2018
Project LMK requires an initial outlay of 500,000 and has a profitability index of 1.4. The project is
  expected to generate equal annual cash flows over the next ten years. The required return for this
  project is 16.
 
  What is project LMK's internal rate of return?
  A) 24.78 B) 22.69 C) 19.88 D) 26.12

Question 2

Southland Tours has net income of 2 million this year. The book value of Southland Tours
  common equity is 8 million dollars. The company's dividend payout ratio is 60 and is expected
  to remain this way.
 
  What is Southland Tours' internal growth rate?
  A) 15 B) 10 C) 6 D) 9


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perkiness

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

D

Answer to Question 2

B


ETearle

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Reply 2 on: Jul 10, 2018
Excellent

rleezy04

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Reply 3 on: Yesterday
Gracias!

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