Project #76311 - finance

1. A stock offers an expected dividend this year of $3.50, has a required return of 14%, and has historically exhibited a growth rate of 6%. Its current price is $35.00, should the investor purchase this stock? Why?

2. Evaluate the following mutually exclusive projects using IRR as a selection criterion. Assuming the discount rate to be 14%, which project—if either—would be selected? Project A costs $50,000 and returns $15,000 after-tax annually. Project B costs $35,000 and returns $11,000 after-tax annually. Both projects last 5 years.

Subject Business
Due By (Pacific Time) 07/12/2015 11:59 pm
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