10

a. Solution:

Year CashFlow
0 (42,000)
1 20,000
2 30,000
3 (10,000)
4 25,000
5 40,000

11

Solution:

Initial price, P0 = 750 BDT

Ending price, P1 = 765 BDT
dividend per share, D1 = 8 BDT
Stock dividend, b = 20% BDT

Dividend Yield = D1/P0 = (8/750)

Capital Gain = (((1+b)*P1)-P0)/P0 = (((1+0.2)*

Total Annual return = Dividend Yield + Capital Gain = 1.07%+22.

Financing rate = 18%
Reinvestment rate = 21%

MIRR 28.16%

= 1.07%

= 22.40%

= 23.47%