Question

1. Verona Industries just paid a dividend of $2.5 per common share. you expect the dividend to grow at 14% per year for the next 2 years and then the dividend will grow at 4% for the foreseeable future. You estimate the appropriate discount rate is 9.80% per year. Using information you estimate the current price for Verona is closet to:

A: $52.25

B.$48.02

C:$61.99

2.

An advantage of the payback period method for accepting and rejecting capital projects is:

A. it is a break-even point

B. It uses all cash flows for the project

C.it is based on an arbitrary rule.

Please help with above Finance questions and explain, thanks.

Answer #1

ANSWER IN THE IMAGE **((YELLOW HIGHLIGHTED)**. FEEL
FREE TO ASK ANY DOUBTS**. THUMBS UP PLEASE.**

Q1.

Q2: Payback period: it is the amount of time required to recover the original cost of the project.

**Ans: A. it is a break-even point.**

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A.
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B.
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C.
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Verona Industries just paid a dividend of $0.95. You expect the
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information you estimate the current price for Verona is closest
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A.
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B.
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C.
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