1. You borrow $270,000; the annual loan payments are $21,758.33 for 30 years. What interest rate are you being charged? Round your answer to two decimal places
2. Thomas purchased 5,623 shares of EKK stock for $138,422 one year ago. The stock pays annual dividends of $3.12 a share. Today, each share is worth $33.82. What is Thomas’ total dollar return on this investment?
3. ABC Inc. just paid its first annual dividend of $2.4 a share. The firm plans to increase the dividend by 4.6% per year indefinitely. What is the firm’s cost of equity if the current stock price is $36.5 a share?