1) Pacific corporation just paid an annual dividend of $2.00 per share on its common stock. Dividends are expected to grow at an annual rate of 4% hereafter. If investers require a rate of return of 9% on Pacific stock, what is the most they should be willing to pay today for a share of this stock?

2) Teiubel industries has $1000 par value bonds with a coupon rate of 7% per year making semiannual coupon payments. If there are 11 years remaining prior to maturity and these are selling for $1076, what is the annual yield to maturity for these bonds?

3) Jim has enough money to buy fifteen 12 packs of coke zero at $6.00 each. If he chooses to invest his money instead and wants to be able to buy sixteen 12 packs next year, what precise or true nominal rate would Jim have to earn in order to be able to purchase sixteen 12 packs next year if he expects the price of Coke to go up by 3%?