1. ABC Co's stock will pay a cash dividend of $3.50 next year. After that, the dividends are expected to increase indefinitely at 4% per year. If the Company's discount rate is 12%, what should the stock price be? (round to nearest cent - 2 decimals)
2. In 2016, the average price of a house was $275,000. 6 years earlier, the average price was $210,000. What was the annual increase in selling price? (round to 1 decimal place)
3. If you invest $100 at an interest rate of 12%, how much will you have at the end of six years? (round to nearest whole dollar).