A stock will be worth $50 at the end of the year and will pay a dividend of $5. How much should an investor pay for the stock if the investor expects a rate of return of 15%?
2. An investor paid $45 for a stock today that will pay a dividend of $5 at the end of the year. How much should the stock be worth at the end of the year if the investor expects a rate of return of 15%?
3. An investor will receive $15,000 at the end of every year for the next 10 years from an investment. If the interest rate is 8%, what is the present value of the investment?
4. An investor expects $80,000 from an investment in 10 years. If the interest rate is 8% what is the present value of the investment.
5. A person wants to retire 15 years from today and would like to have an annual income of $250,000 per year for 10 years starting in 15 years. The discount rate is 6%. What is the present value?