1. You have just arranged for a $1,720,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 7.2 percent, and it calls for monthly payments over the next 30 years. However, the loan has an eight-year balloon payment, meaning that the loan must be paid off then. How big will the balloon payment be?
2. Secolo Corporation stock currently sells for $52 per share. The market requires a return of 8.4 percent on the firm’s stock. If the company maintains a constant 2.2 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?