1. Given a current dividend of $4.00 (just paid), a required rate of return of 8% and a dividend growth rate (g) of 8% for the next 2 years and 2% indefinitely thereafter, compute the current value of the stock.
2. Nesmith Corporation's outstanding bonds have a $1,000 par value, a 10% semiannual coupon, 15 years to maturity, and an 7.5% YTM. What is the bond's price? Round your answer to the nearest cent.
3. Consider a 30 year, FA graduated payment mortgage for $500,000 at 6%, with 5 payment increases of 20%. If fees are 2 points plus $8,000, what is the regulation-Z required APR?