Adam borrows 4500 at 12 percent annually compounded

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1. Adam borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year payment is: $_________. (Please calculate the arithmetic solution and show your work)

2. Tina's Medical Equipment Company paid $2.25 common stock dividend last year. The company's policy is to allow its dividend to grow at 5 percent per year indefinitely. What is the value of the stock if the required rate of return is 8 percent? (Please calculate the arithmetic solution and show your work)

Reference no: EM13582317

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Adam borrows 4500 at 12 percent annually compounded : 1. adam borrows 4500 at 12 percent annually compounded interest to be repaid in four equal annual installments. the
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