Suppose a stock pays shareholders $100/year in dividends. The stock is to be held for 10 years. How much will an investor be willing to pay for the stock a 10% interest, if the investor is certain that the company will go bankrupt after 10 years (.e., the stock will be worthless and no further dividends will be paid)? O A. $1,000 O B. $514 O C. $1,594 O D. $16 E. $614

Assume that an investor expects 18X their investment into a company. Assume the post money exit valuation of a company is going to be $3.6 Million. Assume that the investor's investment into the company is going to be $130,000. Assume the company will likely have 14 employees at the point of the liquidation event. According to the investor's expectations, at the point when the investor invests their money, what proportion of the company will the investor own? O a. 3.6% O b. 50.5% Oc. 35% O d. 65% 18%

5.The North Corporation has a current annual cash dividend policy of AED 3.60. The price of the stock is set to yield a 10% return. What is the price of this stock if the dividend will be paid for 10 years. a. for 8 years? b. for 12 years? c forever?

Energy Cat Company stockholders expect to receive a year- end dividend of $5 per share and then immediately sell their shares for $60 dollars per share. If the required rate of return for the stock is 10%, what is the current value of the stock? $65.00 $60.00 $100.00 $59.09 $650.00