problem1. Sea Side, Inc. just paid a dividend of $1.92 per share on its stock. The growth rate in dividends is anticipated to be a stable 6.1 percent per year indefinitely. Investors need a 24 percent return on stock for the first three years, then a 19 percent return for the next three years, and then a 17 percent return subsequently. What is the current share price?
problem2. A Wesson metal has an outstanding loan that calls for equivalent yearly payments of $9,768.46 over the life of the loan. The original loan amount was $50,000 at an approx of 8.5 percent. How much of the second loan payment is interest?
problem3. Grohl Co. issued 18-year bonds a year ago at the coupon rate of 8 percent. The bonds make half yearly payments. If the YTM on these bonds is 9.5 percent, what is the current bond price?
problem4. Assume you plan to retire in 40 years. If you make 10 annual investments of $ 1,000 in your retirement account for the first 10 years, and no more contributions to the account for the remaining 30 years. If the retirement account earns a fixed 7% annual interest, how much will you have at your retirement?