How much interest did you pay on this loan

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1. If Igneous Proprietary just paid an annual dividend of $0.6 a share, expects dividends will grow 12.6 percent a year for the next 3 years and expects to increase the dividend by 4.4 percent annually forever thereafter. The required return is 9 percent. What is the price of this stock?

2. Suppose that 18 years ago, you borrowed a certain amount of money. The loan had an annual interest rate of 6.1% with continuous compounding, and today you repaid a total of $79012. How much interest did you pay on this loan, as a percentage of how much you borrowed?

Reference no: EM131867942

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