Sensitivity analysis of the capital budegting statement

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‏1. You are analyzing the stock of ABC firm where its current stock price is 78 $ . The firm just paid an annual dividend of 5 % and it is expected that the dividend will grow at 4 % in the coming two years and then increase by 5 % per year thereafter. You estimate that the required return of the stock is 12 %. Estimated the stock price of ABC. And , what is remmendation?

2. Discuss what are the senario analysis and the sensitivity analysis of the capital budegting statement and are the differences between them ?

3. a) Witch project should be chosen based in NPV rule?

Reference no: EM132576463

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