1. Old Time Savings Bank pays 5% interest on its savings accounts. If you deposit $2,600 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the 10th year?
2. ABC Stock was purchased at a price of $16. During the time the stock was owned, it paid a dividend of $1.25. The stock was later sold for $18. What is the total return of the ABC Co. stock?
3. Nynet paid a dividend of R4.18 last year. The company’s management does not expect to increase its dividend in the foreseeable future. If the required rate of return is 18.5 percent, what is the current value of the stock?