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# Fiesta meals is expected to pay an annual dividend of \$1.60 a share next year. The company plans on increasing its dividend by 10 percent, 7 percent,...

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Fiesta meals is expected to pay an annual dividend of \$1.60 a share next year. The company plans on increasing its dividend by 10 percent, 7 percent, and 5 percent a year for the next 3 years, respectively. After that the growth rate will be held the 3 percent per year. What is one share of this stock worth to you today if you require a 15 percent rate of return? A13.87 B14.79 C15.03 D 1528 The fig tree is considering purchasing some new equipment at a cost of \$146,000. The equipment has a 3-year life and is expected to produce cash inflows of \$42,000 in a year 1, \$94,000 in year 2 and \$118,000 in year 3. The equipment will be depreciated using straight-line depreciation to a zero book value over the life of the project. What is the payback period? A1.78 years B 1.86 years C2.01 years D 2.08years Jodie just completed analyzing a project and recapped her analysis with the following statements. Which one of these statements is illogical based on the other three statements? The NPV is 2,408 B the project should be rejected according to the IRR C The payback period is less than the life of the project D the PI is 1.22. Maxwell’s delivery service is considering a \$128,00project. The project is expected to produce annual cash inflows of \$82,000 in year 1 \$48,000 in year 2 and \$29,000 in year 3. What is the projects net present value if the discount rate is 9 percent? a-\$814.67 b \$7,006.38 c\$9,123.32 D\$11,406.18

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