1. Another NewZombie Bank has just issued 180-day bank bills with a face value of $8,000,000. If the current 180-day bill rate is 4.5% p.a., what is the current value of these bank bills? Enter your answer to the nearest dollar.
2. PPT Co. has just paid an annual dividend of $0.75 per share. If the dividends are expected to grow at a rate of 10% p.a. forever and PPT shareholders are known to demand a return of 15%, at what price should PPT shares sell?
3. Taggart Transcontinental has a dividend yield of 2.5%. Taggart's equity cost of capital is 10%, and its dividends are expected to grow at a constant rate. Based on this information, Taggart's constant growth rate in dividends is closest to: