1. Sara requires 40 minutes to produce her first unit of output. If her learning curve rate is 65%, how many units will be produced before the output rate exceeds 10 units per hour?
2. Betty DeRose is going to deposit $16,000 into a savings account at the beginning of every six months for the next eight years. Assume the savings account will earn 10% interest compounded semi-annually. Calculate the amount of interest Betty DeRose will earn over the eight year period. Use the time value of money factors
3. A stock is expected to pay the following dividends: $1 four years from now, $1.6 five years from now, and $1.9 six years from now, followed by growth in the dividend of 7% per year forever after that point. There will be no dividends prior to year 4. The stock's required return is 11%. The stock's current price (Price at year 0) should be $____________.