1. What would you pay for a share of common stock if the next dividend is $2 and you expect to sell it in one year for $20 assuming cost equity is 10% please show me using excel functions.
2. Calculate the implied forward rate of a T-bill with a life of 182 days if the 91-day T-bill rate is 9% and the nine-month T-bill rate is 10.5%.
3. Assume that the six-month interest rate in the U.S is 5%, while the rate is 7% in Japan. If the spot price of dollars in terms of yen is 124 yen/dollar, what is the price of a six-month futures contract for dollars?