What is the annual equivalent of series of cash flows

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1. A share of stock sells for $35. The beta of the stock is 1.2,and the expected return on the market is 12 percent. The stock is expected to pay a dividend of$.80 in one year. If the risk free rate is 5.5 percent,what should the share price be in one year?

2. Assume that you have the following cash flows : 0: -$100 1: $0 2: $100 3: $200 4: $300 What is the Annual Equivalent (A) of this series of Cash Flows for time periods (0, 1, 2, 3, 4) i=6%.

3. What is the Present Value of a $12,000 inflow 2 years from now, and a $40,000 inflow 6 years from now and a $30,000 outflow 4 years from now. Assume an interest rate of 6% for years 1 and 2, 8% for years 3 and 4 and 10% for years 5 and 6. Assume annual compounding.

Reference no: EM132069146

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