Determining the present value of the expected cash flows

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Reference no: EM132047297

1. A firm has just paid an annual dividend of $3.00 per share of common stock. If the expected longminus run growth rate for this firm is 10%, and if you require an annual rate of return of 16%, how much should you be willing to pay for a share of this stock?

2. In international capital budgeting, the appropriate discount rate for determining the present value of the expected cash flows is always the firm's domestic WACC.

3. Over the past 3 years an investment returned 18%, 12%, and 15%. What is the variance of returns?

Reference no: EM132047297

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