QUESTION $7$

A stock is expected to pay $$3\mathrm{.}01$ per share every year indefinitely. The current price of the stock is $$29\mathrm{.}78.$ The equity cost

of capital for the company is $10\mathrm{.}79\%.$ 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\mathrm{.}6786,$ your answer must be $5\mathrm{.}68.$

QUESTION $8$

A company is thinking about marketing a new product. Up$-$front costs to market and develop the product are $$14\mathrm{.}70$

Million. The product is expected to generate profits of $$1\mathrm{.}55$ million per year for $28$ years. The company will have to

provide product support expected to cost $$290746$ per year in perpetuity. Furthermore, the company expects to invest

$$48762$ per year for $10$ years for renovations on the product. This investing would start at the end of year $7.$ Assume all

profits and expenses occur at the end of the year. Calculate the NPV of this project if the interest rate is $7\mathrm{.}73\%.$

QUESTION $9$

Calculate the annualized return of the following returns

NOTE: Enter the PERCENTAGE number rounding to two decimals. If your decimal answer is $0\mathrm{.}034576,$ your answer

must be $3\mathrm{.}46.$ DO NOT USE the $\%$ sign