Assuming the bank pays six percent compounded annually

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1. Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of $1,000 for 5 years and then withdraws the remaining amount 10 years from now. How much will she be able to withdraw 10 years from now, assuming the bank pays 6 percent compounded annually?

2. A share of stock is now selling for $100. It will pay a dividend of S9 per share at the end of the year. Its beta is 1.00. What do investors expect the stock will sell for at the end of the year?

Reference no: EM131954112

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