Author Question: The initial outlay of a project may be reduced by the after-tax salvage value of replaced equipment. ... (Read 124 times)

leilurhhh

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The initial outlay of a project may be reduced by the after-tax salvage value of replaced equipment.
 
  Indicate whether the statement is true or false

Question 2

Dynamic Industries paid a dividend of 1.65 on its common stock yesterday. The dividends of
  Wallace Industries are expected to grow at 9 per year indefinitely.
 
  If the risk-free rate is 3 and
  investors' risk premium on this stock is 8, estimate the value of Wallace Industries stock 2 years
  from now.
  A) 106.84 B) 100.43 C) 54.71 D) 91.81


cpetit11

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Answer to Question 1

TRUE

Answer to Question 2

A



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