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?
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 ?
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
Business Math Question - Find the finance charge per $100 on a loan of $12,600 ...
Business - Sources of finance - I have an assignement to do based on different ...
physics - 5 usage for electricity.(in points)
Business Math Question - Finance charge of $2.50 per $100 for 3 payments.
finance... please help me urgent - an you help me please to get an ideas or ...
BUSINESS - A example of a nonprogrammed decision for a clothing manufacturer is ...
business studies - how does the sale of fixed assets and retained earnings help ...
Business Math Question - You borrow $2,600 and repay the loan in 12 monthly ...
Business Studies - Discuss the suitability of the various sources of finance a ...
Business - please could somebody help me. i have evaluate the use of internal ...