Answer: Option D
Explanation: Internal rate of return ,denoted as IRR, is the rate at which the net present value of a capital investment is zero. It is the rate at which the cash flows of the investment are discounted back to calculate the present value.
While, required rate of return is that return which an investor expects to achieve over time from a capital project.
Thus, one would only select a capital project only if the NPV of a project is positive which can only happen when the return on investment, that is, IRR, is greater than cost of capital, that is, required rate of return.
Answer:
5.7 1
Explanation:
Given:
- Earning expect: $100,000
- Grow rate: 3% = 0.03 (g)
- Discount rate: 10% = 0.1 (r)
- Number of shares: 250,000
We need to find the EPS because all of the earnings are paid out as dividends
= $100,000/250,000 shares
= $0.4
=> Current price:
P = D1 / (r-g)
<=> P = 0.4 (0.1 - 0.03) = 5.7 1
So the price per share of stock is 5.7 1
Hope it will find you well
A career cluster is a group of like careers that allow you to pick different types of sections within the same career. Marketing refers to public relations, advertising, sales and planning. Each of these sections are very important to make sure the marketing plan goes as planned and completes what it was intended to do. The cluster of different sections make up the entire marketing career which are essential to make sure the advertising is completed.
