1. How much is your monthly payment on a home mortgage with the following terms? Borrow $250,000 for 30 years at 5% annual interest.
A. $1,342.05
B. $920.66
C. $12,500
D. $1,041.67
2. What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%, an expected growth rate of 5%, and a beta of 2.0?
A. $6.00
B. $3.00
C. $30.00
D. $15.00