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4. Here are data on two stocks, both of which have discount rates of 15% Stock AStock B 115% eturn on equity share S2.00 S1.50 ividends per sharelS1.00 S1.00 What are the dividend payout ratios for each firm? b What are the expected dividend growth rates for each firm? c What is the proper stock price for each firm? 5. Here are the expected cash flows for three projects: Project YearO1 +1000 2000+3 5000+1000+1000 +3000 +50 bGiven that you wish to use the payback rule with a cutoff period c If the opportunity cost of capital is 10%, which projects have d Payback gives too much weight to cash flows that occur after What is the payback period on each of the projects? (3 points) of 2 years, which projects would you accept? (2 point) positive NPVs? Show the calculation. (3 points) the cutoff date. True of false? (2 points)
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