Project requires an upfront-what is the payback period

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1. Suppose you want to decide whether or not you want to make an investment. The project requires an upfront $1,000 investment, and promises to return $5,000 in 6 years. What is the payback period?

2. Netscrape Communications does not currently pay a dividend. You expect the company to begin paying a dividend of $5.20 per share in 10 years, and you expect dividends to grow perpetually at 6.7 percent per year thereafter. if the discount rate is 14 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131896644

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