Expect constant-growth rate

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Reference no: EM132005890

1. A company with a return on equity of 15% and a plowback ratio of 60% would expect a constant-growth rate of:

a. 4%

b. 9%

c. 21%

d. 25%

Explain/show work

2. If the irr for a project is 15 then the project's npv would be:

a. negative at a discount rate of 10%

b. positive at a discount rate of 20%

c. negative at a discount rate of 20%

d. positive at a discount rate of 15%

Explain

Reference no: EM132005890

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