Net present value of potential capital investment project

Reference no: EM132002864

1. HUD, Co. had a beginning retained earnings of $29,630. For the year, the company had net income of $6,365 and paid dividends of $2,455. The company also issued $4,305 in new stock during the year. What is the ending retained earnings balance?

2. You determined that the net present value of a potential capital investment project is $(742) when the WACC is 10.5%. This means...

a) the project should be accepted.

b) the project should not be pursued.

c) the IRR will be greater than 10.5%.

Reference no: EM132002864

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