1. Federated Investors’ beta is 1.25, and it has paid a $1.00 dividend for many years. If its current price is $26.52, is it over or under valued?
2. (calculating a Present Value) What's the present value of $5,000 to be received on 6 years? (your required rate of return is 8% a year)
3. (calculating the rate of return) A friend promises to pay you $1,200 three years from now if you loan him $1,000 today. What interest rate is your friend offeronh you?