Average annual nominal rate of interest on treasury bills

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1. If $100M project has a 6% IRR and a $100K project has a 27%. Your hurdle rate (WACC) is 5%. Which project would you chose? Why? Are there other questions we should be asking?

2. A firm does not pay a dividend. It is expected to pay its first dividend of $0.35 per share in 2 years. This dividend will grow at 10 percent indefinitely. Using a 12 percent discount rate, compute the current value of this stock.

3. What has been the average annual nominal rate of interest on Treasury bills over the past 111 years (1900-2011)? what is the process to calculate.

Reference no: EM131834901

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