1. You wish to value a share that has expected dividends at the ends of years 1, 2 and 3 of $2.37, $2.52 and $3.20. After year 3, dividends are expected to grow by 4% per year indefinitely. What is the share worth if the relevant discount rate is 8%?

$81.50

$65.39

$51.46

$72.94

None of the above

2. You wish to borrow $50,000 to be repaid by way of equal monthly payments of blended principal and interest to be made at the end of each of the next 60 months. If the interest rate is 12% compounded monthly, what is the approximate amount of the monthly payments?

$1027

$638

$556

$1,112

None of the above