Calculate the present value of this perpetual cash flow

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1. Bozzi Inc. pays a quarterly dividend of $0.95 per share in perpetuity. The first divided will be paid one quarter from today. Calculate the present value of this perpetual cash flow assuming a quarterly interest rate of 1.25%. (Round to two decimals)

2. What would be the principal ballon payment (that is excluding the fixed monthly payment) at the end of 5 years on a $150,000 loan with monthly payments based on a 30-year term at 12 percent compounded monthly?

3. Hook plans to invest $20,000 today into a 10-year CD that promises to pay 5% APR (compounded monthly).  Calculate the period (monthly) rate. (Enter percentages as decimals and round to 4 decimals)

Reference no: EM131992667

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