1.Pharoah, Inc., management expects to pay no dividends for the next six years. It has projected a growth rate of 25 percent for the next seven years. After seven years, the firm will grow at a constant rate of 5 percent. Its first dividend, to be paid in year 7, will be $3.62. If the required rate of return is17percent, what is the stock worth today?(Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)

2.CullumberCorp. is expected to grow rapidly at a rate of 35 percent for the next seven years. The company's first dividend, to be paid three years from now, will be $5. After seven years, the company (and the dividends it pays) will grow at a rate of8.9percent. What is the value ofCullumberstock with a required rate of return of 14 percent?(Round intermediate calculations and final answer to 2 decimal places, e.g. 15.20.)

3.CraneCorp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table.

Year Project 1 Project 2

0 -$1,243,734 -$1,168,933

1 248,000 340,000

2 366,000 340,000

3 432,000 340,000

4 504,000 340,000

5 786,000 340,000

A.Calculate NPV and IRR of two projects.(Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525. Round IRR answers to 2 decimal places, e.g. 15.25 or 12.25%.)

i. NPV of project 1 is $______

ii. NPV of project 2 is $______

iii. IRR of project 1 is________%

iv. IRR of project 2 is________%