1. A Corporation just paid a dividend of $1.5 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future. The required return is 17%. What is the company's current stock price?
2. When using the NPV criterion to evaluate projects, what does the NPV amount mean?
3. You plan to borrow $250,000 at a 7.5% interest rate. The terms require you to amortize the loan over 30 years making monthly payments. How much total interest you will pay during the first five years of the loan life?