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IMP Questions
IMP Questions
0 42000
1 -15600
9. A financing project has an initial cash 2 -22200
inflow of $42,000 and cash flows of −$15,600, 3 -18000 15%
−$22,200, and −$18,000 for Years 1 to 3,
respectively. The required rate of return is 13
percent. What is the internal rate of return? Required rate 13.00%
Should the project be accepted?
IRR 15.26%
Maud'Dib Intergalactic has a new project available on Arrakis. The cost of the project is $34,500 and it will provide c
over each of the next three years, respectively. Any cash earned in Arrakis is "blocked" and must be reinvested in th
percent. The project has a required return of 8.2 percent. What is the project's NPV?
Discoun ra 14%
Year Dividend PVIF PV
1 1.4 1.00 1.40
4. Differential Growth Martin's Yachts is
expected to pay annual dividends of $1.40, $1.75, 2 1.75 1.00 1.75
and $2.00 a share over the next three years, 3 rd year onwards 2 3.15
respectively. After that, the dividend is expected 14.29
to remain constant. What is the current value per 14.28571
share at a discount rate of 14 percent?
Current value per share 17.44
ROE 11.60%
Profit Margin 6.20%
Lester’s has a return on equity of 11.6 percent, a Payout ratio 35%
profit margin of 6.2 percent, and a payout ratio of
35 percent. What is the firm's growth rate?
Lester’s has a return on equity of 11.6 percent, a
profit margin of 6.2 percent, and a payout ratio of
35 percent. What is the firm's growth rate?
Growth rate 7.54%
1.4
1.75
2
₹ 2.57
14.28571 0.769468 10.99239
₹ 13.57