How much is the stock currently worth

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Reference no: EM131976315

1. Nickel Case Corp. does not currently pay a dividend. You expect them to pay a $1/share dividend at the end of year 6, and you expect the dividends to grow perpetually at 3% per year thereafter. If the required rate is 20%, how much is the stock currently worth?

2. An investment will provide a cash flow to you of $10,000/year for 5 years, beginning 13 years from today. If the discount rate is 12%, then how much is the investment worth today?

Reference no: EM131976315

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