Three techniques for solving time value problems

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California clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm's dividend is expected to grow at a constant rate of 5% per year, and investors require a 15% rate of return on the stock.

1. Explain how each of the four fundamental factors that affect the supply & demand for investment capital,m and hence, interest rates, (namely productive opportunities, time preferences for consumption, risk, & inflation) affects the cost of money

2. Explain the 3 techniques for solving time value problems.

Reference no: EM1327813

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