What is the current per share value of this stock

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Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly. What is the difference in the present value of these two sets of payments?

Assume two annuities will each provide $500 annual cash flows for 5 years. One is an ordinary annuity and the other is an annuity due. Which statement concerning these annuities is correct?

New Tours last annual dividend was $2 a share. The company plans to lower the dividend by $.30 each year for the next 3 years. In Year 5, it will pay a final liquidating dividend of $17 a share. If the required return is 22 percent, what is the current per share value of this stock?

Reference no: EM132969030

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