The dividend the firm is expected to pay over one year

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Reference no: EM132020348

1. A project costs $450 and has cash flows of $100 for the first three years and $75 in each of the project's last five years. What is the payback period of the project?

a. 5.67 years

b. 5.33 years

c. The project never pays back

d. 6.00 years

e. 5.00 years

2. A firm's stock has a required return of 10%. The stock's dividend yield is 8%. What is the dividend the firm is expected to pay over a one year period if the current stock price is $40?

a. $2.80

b. $2.00

c. $3.60

d. $2.40

e. $3.20

Reference no: EM132020348

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