1. A project requires an initial outlay of $10 million. If the cost of capital exceeds the project IRR, then the project has a(n): a. positive NPV b. negative NPV c. acceptible payback period d. positive profitability indext (please explain)
2. Based on the following information concerning AT&T preferred stock,
Preferred dividend per share: $10
Beta: 1.5
Risk free rate: 4%
Market risk premium: 6%
What is the expected price in 5 years?