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  3. 1. if last dividend paid is $1.80, the growth rate

1. If last dividend paid is $1.80, the growth rate is 6%, and the required...

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Finance

1. If last dividend paid is $1.80, the growth rate is 6%, and the required rate of return is 12%. What is the stock price according to the constant growth dividend model?

2. The furniture store offers you no-money-down on a new set of living room furniture. Further, you may pay for the furniture in three equal annual end-of-the-year payments of $1,000 each with the first payment to be made one year from today. If the discount rate is 6%, what is the present value of the furniture payments?

3. Given the following cash flows, what is the future value at year ten when compounded at an interest rate of 12.0%? Year 0 1 5 10 Cash Flow $4,000 $3,000 $2,000 $1,000 4. If the rate of interest (r) is 9%, then you should be indifferent about receiving $950 in one year or ________.

a. $1,035.50 today

b. $950 today

c. None of the above

d. $871.56 today

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