Stock is expected to pay future annual dividend

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1. A stock is expected to pay a future annual dividend of $5, and has a growth rate of 2%. The required rate of return is 10%. a. What is the price of the stock?

2. A project has an intial investment of 100,000, an opportunity cost of capital of 6% and the following projected cash flows. YR 1 - 35,000 YR 2- 40,000 YR 3- 45,000 a. What is the NPV for this 3-year project?

3. Find yield of maturity for a bond with coupon rate 16.80%. 17 Years to maturity and face value 1000

If price of bond is $1259. 59 and coupnd are paid semi annually with next one due in 6 months.

Reference no: EM132020222

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