1. For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value $ 2,300 8 19 % $ 10,153 21 5 106,305 15 12 244,382 31 4.
2. Simmons Corporation has established a target capital structure of 40 percent debt and 60 percent common equity. The current market price of the firm's stock is P = $28; its last dividend was D = $2.20, and its expected dividend growth rate is 6 percent. What will Simmons’ marginal cost of common stock, Rs, be?