Question: first pic is 1a, second is 1b, and last two photos are question 1c. Thanks. Baggins Systems is a firm that has encountered some financial



Baggins Systems is a firm that has encountered some financial difficulties. The company projects that they will have enough cash flow to continue paying their current dividend for 5 more years before they must stop paying a dividend altogether. The company just paid a dividend of $16.82, and will continue to pay the same dividend for the next 5 years, after which they will never pay another dividend. What is the value of their stock if the discount rate is 6.83%? Select one: a. $ 78.52 b. $ 65.98 c. $ 71.08 d. $ 69.28 e. $ 64.56 The Lawrence Sisters Moving Company paid a quarterly dividend of $2.54 per share last quarter. Today, the company announced that future dividends will be increasing by 1.78% percent quarterly. If you require a 9.62% percent annual rate of return, how much are you willing to pay to purchase one share of this stock today? (Round intermediate steps to 4 digits.) Select one: a. $ 413.63 b. $ 423.51 c. $ 409.55 d. $ 418.64 e. $ 408.87 You are considering two independent projects both of which have been assigned a discount rate of 11.5% percent. Based on the project NPV, what is your recommendation concerning these projects? Project A Year Cash Flow 0 -$91,850 1 $28,405 2 $64,890 Project B Cash Flows Year 0 -$45,000 1 $38,500 N $17,325 Select one: a. You should accept project A and be indifferent to project B. b. You should accept project A and reject project B. c. You should reject both projects. d. You should accept project B and reject project A. e. You should accept both projects
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