1. What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?
2. Company X paid their first annual dividend yesterday in the amount of $ 0.28 per share. The company plans to doulbe each annual dividend payment for the next three years. After that time, they are planning on paying a constant $1.50 per share indefinitely. What is one share of this stock worth today of the market rate of return on similar securities is 11.5 %? please show step by step answer...