What might investors expect to pay for the stock one year

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Reference no: EM131322347

1. You borrow a $328,000 add-on interest loan from the credit union and will repay in equal installments over 19 years. The nominal rate of interest is 4.5 %. Assuming daily repayment and compounding rate of interest, obtain the annual percentage rate.

a. 9.88%

b. 10.38%

c. 10.88%

d. 11.38%

2. A stock paying $5 in annual dividends currently sells for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now?

A) $82.20

B) $86.20

C) $87.20

D) $91.20

Reference no: EM131322347

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