1. Your company is considering the following project. The costs and cash flows are listed below. Year Project Cash Flows 0 -$41,000 1 15,700 2 19,400 3 24,300 4 18,100 What is the project's payback period?
2. Gas Co., Inc. just paid a dividend of $2.05. They maintain a constant growth rate of 4% and the stock is currently selling for $35. What is the required return?
3. The last dividend paid by ABC, Inc. was $1.00. ABC's growth rate is expected to be 0 for two years, after which dividends are expected to grow at a rate of 3% forever. The required rate of return is 8%. What is the current price of the stock?