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:
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.
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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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