Estimate universal forest-what is its required return

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1. Suppose Universal Forest’s current stock price is $49.00 and it is likely to pay a $0.41 dividend next year. Since analysts estimate Universal Forest will have a 9.0 percent growth rate, what is its required return? (Round your answer to 2 decimal places.)

Required return = %

2. Project L costs $55,000, its expected cash inflows are $11,000 per year for 10 years, and its WACC is 14%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Reference no: EM131916240

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