USE THE INFORMATION BELOWTO ANSWER QUESTIONS 47 and 48 ABC Industries is considering a project...
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USE THE INFORMATION BELOWTO ANSWER QUESTIONS 47 and 48
ABC Industries is considering a project that has the following cash flows:
Year Cash Flow
0 -51,000
1 10,000
2 25,000
3 15,000
4 25,000
5 34,000
The project has a payback period of 3.5 years. The firm's cost of capital is 17%.
47. The project's net present value (NPV) is $_______.
48. The IRR of the project is ____%.
21. Data for the last 8 years of stock prices and dividends paid for Poggy, Inc. are listed below:
Year End of Year Stock Price Dividend
0 $12.10
1 $14.68 $0.80
2 $9.57 $0.83
3 $12.00 $0.91
4 $12.46 $1.02
5 $18.32 $1.02
6 $21.10 $1.24
7 $19.54 $0.80
8 $22.18 $1.41
a. What is the average rate of return for Poggy, Inc. stock over the 8 year time period?
b. What is the standard deviation of returns for Poggy, Inc. stock over the 8 year time period? (Compute the standard deviation assuming this is a population of returns, not a sample that is, use the procedure described in the textbook for calculating the standard deviation of a series of stock returns).
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