QUESTION 7

A stock is expected to pay $2.77 per share every year indefinitely. The current price of the stock is $29.49. The equity cost of capital for the company is 10.21%. What price would an investor be expected to pay per share 7 years into the future?.

NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68.

QUESTION 8

A company is thinking about marketing a new product. Up-front costs to market and develop the product are $12.42 Million. The product is expected to generate profits of $2.43 million per year for 29 years. The company will have to provide product support expected to cost $306997 per year in perpetuity. Furthermore, the company expects to invest $44147 per year for 13 years for renovations on the product. This investing would start at the end of year 6. Assume all profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is 6.37%.

QUESTION 9

Calculate the annualized return of the following returns

Date	Return
11/01/2018	-0.86%
11/14/2018	1.04%
12/01/2018	-3.37%
12/14/2018	26.48%

NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is 0.034576, your answer must be 3.46. DO NOT USE the % sign