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How much can he afford to borrow to purchase a car

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Q1. Joe can afford $300 a month for 5 years for a car loan. If the interest rate is 4.65 percent, how much can he afford to borrow to purchase a car?

Q2. The common stock of Tiffany Fabrics pays an annual dividend of $1.85 a share. The company has promised to maintain a constant dividend even though economic times are difficult. How much are you willing to pay for one share of this stock if you want to earn a 9 percent annual return?

Reference no: EM132498345

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