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1. NonConstant Dividend Growth Model Problem
   1. Initial Dividend is $2.00 grows 50% first year, 25% second year, 25% third year, and 7% constantly forever. Required rate of return is 18%. Whats the price of the stock today?

2. Debt Common Preferred

   50000 Semi Annual Bonds at 900 1000000 Shares at $60 100000 Shares at 103

   N= 10 Years Beta = 1.25 Dividend Rate = 11%

   Coupon rate = 7% Market Rate = 12% Par Value = $100

   FV = $1000 Risk Free Rate = 3%

   Tax Rate = 30% (WACC Problem (solve for each variable of the WACC formula, and than the NPV)?

3. 0 1 2 3 4

   -1000 400 500 700 900

   WACC=10%

   Calculate the following variables:

   NPV:

   IRR:

   PB:

   DPB:

4. Cash Flow Problem REMEMBER THIS IS A 4 YEAR PROJECT: New factory = $10,000,000

   Tear down Old factory which cost to build = $2,000,000

   Instead of building new factory, can sell the land for = $500,000

   New factory has a life of 5 Years but the project is 4 years so depreciate straight line over 5 years

   Salvage Value at the end of 4 years = $1,000,000

   Revenue= $5,000,000 per year

   Variable Costs = $1,000,000 per year

   Fixed Costs excluding depreciation = $500,000

   WACC=10%

   Tax Rate = 30%

   WHATS THE NPV OF THIS PROJECT?