Required to pay on semi annual payment schedule

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1. What is the present value of the following cash flows: $200 in year 1, $0 in years 2-3, $400 in year 4, and $600 in years 5-7? Assume an interest rate of 12%. What is the future value? (show work please)

2. A family wants to buy a house that cost $180,000 if they put down $30,000 and get a 30 year mortgage at 12% compounded semi annually how much will they be required to pay on a semi annual payment schedule.

3. Holtzman Clothiers's stock currently sells for $18 a share. It just paid a dividend of $1.75 a share (i.e., D0 = $1.75). The dividend is expected to grow at a constant rate of 7% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $ What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM132012298

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