Posted by **zeeshan** on Wednesday, August 4, 2010 at 12:58pm.

Question No 1:

Sumi Inc. has policy of paying a Rs. 9 per share dividend every year. If this policy is to continue indefinitely, what will be the value of a share of stock at a 12% required rate of return?

Rs. 30

Rs. 45

Rs. 60

Rs. 75

Question No: 2

The XYZ Corporation is considering an investment that will cost Rs. 80,000 and have a useful life of 4 years. During the first 2 years, the net incremental after-tax cash flows are Rs. 25,000 per year and for the last two years they are Rs. 20,000 per year. What is the payback period for this investment ?

3.2 Years

3.5 Years

4.0 Years

Cannot be determined from the given information

Question No: 3

Which of the following statement is INCORRECT regarding a normal project ?

a)If the IRR of a project is greater than the discount rate, k, then its PI will be greater than 1

b)If the NPV of a project is greater than 0, then its PI will exceed 1

c)If the IRR of a project is 8%, its NPV, using a discount rate, k, greater than 8%, will be less than 0

d)If the PI of a project equals 0, then the project's initial cash outflow equals the PV of its cash flows

## Answer This Question

## Related Questions

- business finance - Hot Wings, Inc., has an odd dividend policy. The company has ...
- Finance - Hetfield and Ulrich, Inc., has an odd dividend policy. The company has...
- Finance - Bread, Inc., has an odd dividend policy. The company has just paid a ...
- finance - 3.The Lo Company earned $2.60 per share and paid a dividend of $1.30 ...
- non-constant dividends - I have no idea where to begin with this one ! ...
- Business Finance - A corporation will pay an annual dividend of $0.65 one year ...
- FInance - Most corporations pay quarterly dividends on their common stock ...
- Finance - Company Q has just paid a dividend of $1.40 per share. Its dividend is...
- Finance - Company Q has just paid a dividend of $1.40 per share. Its dividend is...
- finance - Julie's X-Ray Company paid $2.00 per share in common stock dividends ...

More Related Questions