What is effective annual rate of interest

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Reference no: EM131989645

1) Suppose that today's stock price is $30.12. If the required rate on equity is 18.4% and the growth rate is 6%, compute the expected dividend (i.e. compute D1)

2) The terms of sale are 3/12, net 35. What is the effective annual rate of interest?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

3) A company sells 156,378 units per year. Fixed costs per order are $106 and carrying cost is $35 per unit per year. What is the Economic Order Quantity?

Enter your answer rounded off to two decimal points.

4) ABC Company's last dividend was $4.2. The dividend growth rate is expected to be constant at 7% for 4 years, after which dividends are expected to grow at a rate of 4% forever. The firm's required return (rs) is 15%. What is its current stock price (i.e. solve for Po)?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM131989645

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