Question: FINACIAL expert please solve this one need help from financial expert and please give the reason why the option has been chosen for the return



85.Assume that investors require a rate of return of 10% to invest in a firm that pays a dividend of $2 per year. The price of the firm's stock is currently based on the assumption that the firm's dividend will remain constant. What will be the rate of change in stock price if the firm begins to grow at a rate of 2% per year and is expected to continue to do so indefinitely? Which of the following is an example of a managerial option? A. The option to expand the project B. All of the given answers is correct C. The option to contract the size of the project D. The option to postpone the project. E. The option to abandon the project. Which of the following is true about the discounted payback period method? I A. Discounted bay back is much simpler to calculate than regular payback. B. If a project pays back on a discounted basis then it must have a positive NPV. C. An advantage of this method is the fact that the payback period cut off date is arbitrary set. D. None of the given answers is correct. E. When comparing two projects, the one with the shorter payback period on a discounted basis will always have a higher NPV
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