15. Which is the right formula for B5? Scenario Probabilities Net Present Value (152,000) 87,352 239,352 Worst Case 20% 60% 20% 3 Base Case Espected NPV a) SUM(C2:C4 B2:B4) b) -B2 C2+B3*C3+B4 C4 c) SUMPRODUCT B2:B4,C2-C4) d) Allof the above e) None of the above Solution: 16. What is the correct formula for B4? 1 Pre-tax Cash Flow 2 Taxes 84,532 29,586 41,000 a) Bl+B2+B3 Depreciation Annual After-tax Cash Flow c) BI-B2+B3 d) B1-B2-B3 e) B1 B2/B3 Solution 17. A preferred stock is expected to pay a $0.75 dividend every quarter indefinitely. If the required rate of return is 1 000 with quarterly compounding, what formula in B3 cam be used to determine the value of this stock? a) BI/B2/4 b)BI/B2 c) BI/(B2/4) d) -Bi*4(B2/4)