Find all of the zeros of the polynomial function below. Write your results in the question box.  

AAPL has just paid an annual dividend of $2 per share. Analysts are predicting an 5% growth rate per year for the next 2 years. After two years, AAPL is expected to grow by 2% per year forever. AAPL ‘s cost of equity is 10% per year. What is the price per share of AAPL according to the dividend discount model (multi-stage growth)?

A project costs CF0 = -1300 to initiate. This project will produce the following cash flows starting in year 1: CF1 = $700, CF2 = $800. Solve for IRR (using calculator). 

Returns on BAC shares over the past 4 years are as follows (hint: this is a SAMPLE): 10%, -5%, 20%, and 15%. What is the standard deviation (risk)?

Jarett & Sons’s common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $2.00 a share at the end of the year, and the constant growth rate is 5% a year. If the company issued new stock, it would incur a 3% flotation cost. What would be the cost of equity from new stock?

True or False: You do not need WACC to calculate NPV

A project pays CF0 = $+40 upfront. This project will produce the following cash flows starting in year 1: CF1 = $-80, CF2 = $+104. Solve for the IRR. 

The prevailing cost of capital is 20% (WACC). You are considering two mutually exclusive projects, A and B. Which one should you take? Project A has the following cash flows: CF0=-$1010, CF1=$480, CF2=$1050. Project B has the following cash flows: CF0=$-1000, CF1=$500, CF2=$1000.  

The market consensus is that Analog Electronic Corporation has an ROE = 7%, a beta of 1.13, and plans to maintain indefinitely its traditional plowback ratio of 3/4. Last year’s earnings were $5 per share. The annual dividend was just paid. The consensus estimate of the coming year’s market return is 14%, and T-bills currently offer a 6% return.

Solve for values of b in the equation: