Calculate your monthly principal and interest payment

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1. The High Yields Company's last dividend was $1.50. The dividend growth rate is expected to be constant at 30% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If High Growth's required return is 13%, what is the company's current stock price?

2. If you want to take out a 30 year, $250,000 mortgage at 5.5% with 2 points.
a. Calculate your monthly principal and interest payment?
b. What is the APR (actual/true/effective rate of interest) on the loan?

3. If Angie is 35, wants to retire in 30 years and be able to withdraw $50,000 for each year in retirement, and expect to live to age 85, how much do you need to invest at 9.5% each year (to the nearest dollar)

4. Suppose you believe that Cane Corporation's stock price is going to decline from its current level of $82.50 sometime during the next 5 months. You could buy a 5-month, a contract of put option at the strike price of $85 per share. If you bought this option for $510.25 and Cane's stock price actually dropped to $60, what would your pre-tax net profit be?

Reference no: EM13666299

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