(20%) (Project analysis) Consider the following three mutually exclusive projects: Project Cash flow at yr 0 Cash flow at yr 1 Cash flow at yr 2 -3000 2000 1000 -3000 1000 7000 -5000 2000 1000 a. (5%) Determine the payback period for each of the projects. b. (5%) Calculate the NPV of each of the project if interest rate is 4% compounded yearly. c. (5%) Calculate the IRR for each of the projects. d. (5%) Calculate the profitability index for each of the projects. A B C Cash flow at yr 3 500 2000 10000
Dividend Policy
A dividend is a part of the profit paid to the shareholder in an organization. The management of the organization has the right to decide the policy for giving a dividend from the earnings to the shareholder. However, an organization is not in the obligation to declare a dividend for the investor. Dividend policy differs from organization to organization. As the management has the only authority to decide dividend rate, dividend amount, and time of dividend payout by considering all other elements that create an impact on the payment of a dividend.
Stocks And Dividends
Stock or equities are generally sold and bought in the Stock Exchange or which is popularly known as the stock market. Stocks are issued in the Stock Exchange for the sole purpose of raising funds for the Corporation or the company itself. Now since an individual has purchased a portion of the Corporation or company, he or she may claim to be a part of the earnings or profit of the company.
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