You've been approved for a scholarship. You will receive $10,000 per year for 4 years, with the first payment received immediately. What is the present value if the discount rate is 6%, compounded annually?
The Ford Company plans to pay $3 annual dividend next year. The dividend is expected to grow 10% the following year, then 12% for the year after that, and then to 5% annually thereafter. Given the required return of 12%, what is the price of the stock today?