1. A firm’s capitalization rate is 22%, while the firm invests in projects with ROE of 20%. The growth in the firm is described by this relationship:The firm’s year-end dividend will be $2 per share, while EPS is $5. What is the PV of growth opportunities?
2. Identify six sources of short term financing available in financing new business and give detailed explanation as to the process involved and how each of them is used in obtaining required financing.
3. You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?