1. What is the value in year 3 of a $760 cash flow made in year 5 if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Value in year 3 $
2. Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% per year for the next 4 years and then altering the growth rate to 3.5% per year. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5%?