Firm expected dividends for the next

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1. Rabbit has saved $10,000 annually for the last 35 years in an account earning 8%, If jack estimates that he will live for an additional 25 years, how much would he be able to start withdrawing annually for his retirement

2. Mike is considering the purchase of the following: bultririte $1000 par, 6 1/8% coupon rate, 15 year maturity bond which is currently selling for $1040. If mike purchases the bond, what would his appx yield-to-maturity be?

3. Suppose a firm expected dividends for the next three years are as follows D1= $1.10, D2=$1.20 and D3=$1.30. After three years, the firms dividends are expected to grow at 5% per year. what should the current price of the firms stock (P0) be today if investors require a rate of return of 12% of the stock?

Reference no: EM131152796

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