The initial outlay of a project may be reduced by the after-tax ...

[leilurhhh]

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]

Answer to Question 1

TRUE

Answer to Question 2

A

[leilurhhh]

Thank you

[cpetit11]

Happy to help you