Question $1$: $(15$ points$)$

It is now May $8,2025,$ "ARTEMIS Solar" Corporation in Oakland California is expected to experience a $27\%$ annual growth for the next five years. By the end of five years other firms will have developed comparable technology, and Artemis's growth rate will slow to $5\%$ per year indefinitely. Stockholders require a return of $11\%$ on the firm's stock. The most recent annual dividend Do$,$ which was paid yesterday, was $$4\mathrm{.}50$ per share.

a$.$ Calculate the expected dividends for $2025$ through $2030.$

b$.$ Calculate the value of Artemis stock today.

c$.$ Calculate the current Dividend Yield and the Capital Gains Yield, respectively.

d$.$ Suppose that the stock is traded at NASDAQ at $$125$ dollars. Is the stock Overvalued or Undervalued? Explain your answer properly.

Question $2$: $(10$ points$)$

Assume that "Aphrodite" Stock is currently valued at $$75$ dollars. The current Dividend is $$3\mathrm{.}75$ dollars and the required rate of return that the investors demand is $10\%.$

a$.$ What is the growth rate of the Aphrodite's stock?

b$.$ Suppose that the stock is traded at NASDAQ at $$35$ dollars. Is the stock Overvalued or Undervalued? Explain properly your answer.

c$.$ Calculate the Dividend Yield and the Capital Gain Yield, respectively.

d$.$ Calculate the Price of the stock on May $8,2025.$

Question $3$: $(15$ marks$)$

Project "DELTA" has a cost of $$15,000$ and is expected to produce benefits $($e$.$g$.,$ cash flows$)$ of $$5,200$ per year for five years. Project "OMICRON" costs $$30,000$ and is expected to produce cash flows of $$9,400$ per year for five years.

${?}^{a.\text{C}\text{a}\text{l}\text{c}\text{u}\text{l}\text{a}\text{t}\text{e}\text{t}\text{h}\text{e}\text{t}\text{w}\text{o}\text{p}\text{r}\text{o}\text{j}\text{e}\text{c}\text{t}\text{s}\text{N}\text{e}\text{t}Present\text{V}\text{a}\text{l}\text{u}\text{e}\text{C}\text{r}\text{i}\text{t}\text{e}\text{r}\text{i}\text{o}\text{n}\text{,}}$ Profitability Index Criterion, Payback Criterion and Discounted Payback Criterion, assuming a discount rate of $9\%.$

b$.$ Which project would be selected, if they are Mutually Exclusive, using each ranking method?

c$.$ Discuss in detail the advantages$/$disadvantages associated with the Payback criterion.

d$.$ Which of all the above$-$mentioned criteria is the best one for the appropriate selection of Independent and Mutually Exclusive projects?

Question $4$: $(10$ points$)$

Consider a LOAN SIZE of $125,000$ dollars for six years $N=6$ and an interest rate of $i=9\%.$

a$.$ Calculate the Loan payment.

b$.$ Construct a proper Amortization Schedule and show all calculations.

c$.$ What kind of Annuity do you prefer when you are a borrower?