1. ABC Inc.'s stock is currently selling for $46.52 per share. The company just paid its first annual dividend of $4.05 a share. The firm plans to increase the dividend by 6.7 percent per year indefinitely. What is the required rate of return on equity?
2. You have just landed in London with $550 in your wallet. Stopping at the foreign exchange? booth, you see that pounds are being quoted at $ 1.96 divided by pound$1.96/£. For how many pounds can you exchange your $550??
3. ABC Company has projected Sales of $27,770 in January. The sales are expected to grow by 4% each month. ABC's collection schedule is as follows: ABC collects 15 percent of its sales in the month of sale and the remainder is collected in the following month. What is the amount of the April cash collections?