What is the firms market value per share

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1) What is the IRR(%) for the following project if its initial after tax cost is 5,000,000 and its is expected to provide after-tax operating cash inflows of 1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and 1,300,000 in year 4?

a) 15.57 b)17.55% c) 13.57% d)15.75% e) none of the above

2) the current annual dividend of a company is $1.25/ share and the firm's required return is 12% dividends are expected to grow at 8% annually for three years, followed by a 5% constant annual growth rate. What is the firm's market value per share?

a) 19.21 b) 12.91 c) 29.11 d) 18.93 e) none of the above

Reference no: EM131179926

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