Calculate the semiannual payments

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1. Average Return The past five monthly returns for PG Company are 4.15 percent, -.05 percent, 5.55 percent, 7.69 percent, and 5.24 percent. What is the average monthly return?

2. Suppose a loan of $6965 is borrowed from a bank at 7.1% nominal annual interest rate and is to be paid back during 5 years. The payments are made semiannually. Calculate the semiannual payments. (Note: compounding is done on semiannual basis)

3. Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.30 per share in 2 years. This dividend will grow at 14 percent indefinitely. Using a 16 percent discount rate, compute the value of this stock.

Reference no: EM131983355

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