BMW has been paying an annual dividend of $3.70 for the past 5 years, and plans to continue for the next 1 years. After that, they are expected to grow at 15%. Your required return to hold this stock is 17%. What would you be willing to pay for this stock?
Apple Computers just paid a dividend of $3.88. You expect a growth rate of 10% for 1 years. After that, they are expected to grow at 2%. Your required return to hold this stock is 7%. How much is this stock worth?
Moven Bank is offering an account that pays a simple 29%, compounded quarterly; what is the effective annual rate?