1. A reasonable approach to buying a large amount of stock is to break the large order into many small orders, and have the many orders executed by an algorithm.

True / False

2. A project will provide a net cash inflow of $40,000 next year and the cash flows are expected to grow at a rate of 4% per year for the following 19 years. The project ends in year 20 (the cash flows from the project are 0 from year 21 on). The project requires and initial investment of $600,000. You require an 8% return on this project. What is the project net present value?

-$70,102

-$44,348

-$12,756

$105,426

3. A company's next dividend payment will be $3.5. The dividend will increase by 4 percent per year forever. The stock is currently selling for $50 a share. What is the market required rate of return for this stock?

5%

11%

14%

19%