1. You are considering a project with an initial cost of $10,600. What is the payback period for this project if the cash inflows are $1,500, $2,780, $3,650, and $4,800 a year over the next four years, respectively?

2. Bioscience Inc. will pay a common stock dividend of $3.20 at the end of the year (D1). The required return on common stock (Ke) is 20 percent. The firm has constant growth rate (g) of 10 percent.

Compute the current price of the stock (P0)

Current Price:________________