What would be fair price for this stock today

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Reference no: EM132057289

1. A company just paid a dividend of $1.30 per share. You expect the dividend to grow 13% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 6% per year. If the required rate of return is 9% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)

2. Suppose you want to buy a car that costs $15,000. If the dealer is offering 100% financing at 6.5% APR for a 5 year loan, what would be the monthly payment? (Answer to the nearest penny).

Reference no: EM132057289

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