Suppose that Manisa Co. is currently not paying any dividends, but is is known that starting in four years (i.e. the first payment is four years from now), Manisa will begin paying $2 a share. The interest rate is 4%. In three years time, what will be the price of Manisa Co.
Suppose that Manisa Co. is currently not paying any dividends, but is is known that starting in four years (i.e. the first payment is four years from now), Manisa will begin paying $2 a share. The interest rate is 4%. What is the price today of Manisa Co. shares?
Suppose that the forces of good have an army of 1 million and the forces of evil have an army of 500,000. However, the forces of good's army is growing at 4.66%, while the forces of evil's army is growing at 7%. Using the rule of 70, in approximately how many years will the forces of evil catch-up with the forces of good?
Suppose that there is a bond that will pay $500 for each of the next three years (the first payment is one year from now). At the end of three years the bond matures and the holder receives the $10,000 face value of the bond. If the market rate is 4%, what is the present value of the bond?