1. The dividends of a company are expected to remain at the current $4 for next three years and thereafter decrease at a constant rate of 2 percent per year. The required rate of return is 9%. What is the value of the company stock?
2. A person or business wants to borrow funds for a long term. So, when forecast interests are ______, a person or business should borrow ______ term.
A) up; long
B) up; short
C) down; short
both A) and C)
3. How do lenders and borrowers benefit from an amortization schedule?
4. How can borrowers save interest expense by increasing the amount paid on a loan?
5. What is The impact of inflation on interest rates.