The stock of firm will pay dividend

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Reference no: EM132002049

1. You have purchased a house for $440,000 and taken a loan that is to be repaid in 180 equal monthly payments beginning next month (15 year loan). The interest rate charged is 0.31% monthly. What are your monthly payments?

2. The stock of a firm will pay a dividend of $13 a year from now. The dividend paid by the firm will increase at a rate 3% every year. The dividends are discounted at a rate of 8.20% every year. What is the price of the stock today?

Reference no: EM132002049

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