What is the present value of the stock

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-An investor plans to pay his son's university tuition fees for 4 years starting 18 years from now. The current annual cost of university is £9,200, and they expect this cost to rise at an annual rate of 2%. In his planning, he assumes that the appropriate discount rate is 3% per annual. How much must he saves each year, starting next year, if he plans to make 17 identical payments? Show all the calculations step-by-step. Formulas and diagram(s) are essential.

-Discount Factor: https://www.retailinvestor.org/pdf/futurevaluetables.pdf

XYZ Plc has just paid a dividend of £1.5 per share. The dividends are expected to grow at 12% per year for the next three years and at the rate of 3% per year thereafter. If the required rate of return on the stock is 6%, what is the present value of the stock?

Reference no: EM133116107

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