Cause dividends per share to fluctuate the least

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1. It is now June 2017 (in case you forgot).  If producers can be found, the cost to stage the revival of Pirates of the Caribbean on Ice: The Revenge of the Daiquiri would be $30 million. This cost won’t be incurred until 2019. The company will stage the show in 2020 and 2021, generating net cash inflows of $20 million each year. In 2022, the show will be cancelled at an overall net loss of $5,000,000. What is the IRR of this project?

A. 14.4%

B. 21.5%

C. 10.2%

D. 12.7%

2. Which of the following dividend policies would cause dividends per share to fluctuate the least?

A. Constant payout ratio

B. Constant Dollar

C. Small regular plus special

D. Residual Dividend method

Reference no: EM131586285

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