1. Suppose a firm's stock is selling for $15. It just paid a $2 dividend, and dividends are expected to grow at 4% per year. What is the required return?
2. If you borrow $15,618 and are required to pay back the loan in seven equal annual installments of $3,000, what is the interest rate associated with the loan?
3. What aspects of consumption do we care about for investment purposes?