Firm are examining project with uncertain cash flows

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1. Analysts at your firm are examining a project with uncertain cash flows. There is a 10% chance the project will yield an NPV of $9,300, a 60% chance the project will yield an NPV of $13,600, a 20% chance the project will yield an NPV of 1$5,300, and a 10% change the project will yield an NPV of $22,300.

What is the standard deviation of this project?

2. A stock just paid a dividend of $4. This dividend is expected to grow consistently at 3%. Investors require an 11% rate of return. What will be the value of the next dividend (Dividend at time 1)?

Reference no: EM131937813

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