(a) You need $3,000 to buy a new stereo for your car. If you have $1,200 to invest at 6% compounded annually, how long will you have to wait to buy the stereo?
(b) A stock will pay a dividend of $2 at the end of the year. It sells today for $100 and its dividends are expected grow at a rate of 4%. What is the implied rate of return on this stock? Enter in percent and round to two decimal places.
(c) A company pays out 40% of its earnings in dividends. Its return on equity is 14%. What is its growth rate? Enter in percent and round to two decimal places.