Question: What dividend yield would be reported in two years in the financial press for a stock that currently pays a $1.50 dividend per quarter, has

What dividend yield would be reported in two years in the financial press for a stock that currently pays a $1.50 dividend per quarter, has a return on equity of 18% and earnings per share of $7.75 and a projected stock price in two years of $40?

A. 15%.

B. 16.5%

C. 16.2%

D. 4%.

What is the maximum that should be invested in a project at time zero if the inflows are esti- mated at $50,000 annually for 3 years, and the cost of capital is 9%?

A. $101,251.79

B. $109,200.00

C. $126,564.73

D. $130,800.00

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