What is the stock expected price five years from now

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Reference no: EM132071438

1. Your investment account pays 8.4%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?

a. 8.68

b. 5.08

c. 6.28

d. 7.48

e. 3.88

2. Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.00% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?

a. $36.36

b. $38.96

c. $38.31

d. $37.66

e. $37.01

3. Suppose you are buying your first home for $160,000, and you have $15,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

a. $898.20

b. $904.30

c. $922.60

d. $916.50

e. $910.40

Reference no: EM132071438

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