1. Ryan pays back a loan of X in one lump sum at the end of 20 years. Doing so means be pays 800 more in interest than if he had used equal annual payments for 10 years. The effective annual interest rate is 6%. Find X.
2. CX Enterprises has the following expected? dividends: ?$1 in one? year, ?$1.13 in 2? years, and ?$1.20 in 3 years. After? that, its dividends are expected to grow at 5?% per year forever? (so that year? 4's dividend will be 5?% more than ?$1.20 and so? on). If? CX's equity cost of capital is 11?%, what is the current price of its? stock?
The current price of the stock is ?$