1. NoGrowth Corporation currently pays a dividend of $ 0.41 per? quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the? firm's equity cost of capital is 13.9 %?? The stock price is ?$ _. ? (Round to the nearest? cent.)
2. Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios?
3. Suppose that you have a debt instrument that pays you $0 in one year, $1,000 in two years, $2,000 in three years, and $4,000 in four years. Market yields for this type of debt instrument are 4 percent. What is the modified duration of this debt instrument?