What is one share of this stock worth today

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1. A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,100 per month for the next three years and then $1,100 per month for two years after that. If the bank is charging customers 10.00 percent APR, how much would it be willing to lend the business owner?

2. Distant Groves announced today that it will begin paying annual dividends next year. Dividends for the first three years will be $ 0.15, $ 0.20, and $ 0.25 a share, respectively. After that, dividends are projected to increase by 4 percent per year. What is one share of this stock worth today at a required return of 8.5 percent?

Reference no: EM131999076

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