1. Bill is considering investing $450 at the end of every month in a fixed income instrument. He will be receiving $27,000 at the end of 4 years. If the interest is compounded monthly, what is the annual rate of return earned on the investment?
2. What is Hot Rocks Corp WACC if debt was 45% and equity was 55% of total liabilities and shareholders' equity with the expected return for debt of 8% and expected return for equity of 19%?
3. A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend on this stock?