Imagine that Badger Championship, LLC is going to pay a dividend of $21 this year, $25 next year (i. e., in year 2), and $30 the year after that (i. e., in year 3). You know that it has a discount rate of 12%. What is the price of Badger Championship stock right now?

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%