The stock is expected to pay a dividend of 125 at the end, Financial Management

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The stock is expected to pay a dividend of 125 at the end

1. Suppose you borrowed $14,000 at a rate of 10% and must repay it in five equal installments at the end of each of the next five years. How much interest would you have to pay in the first year?

2. The stock is expected to pay a dividend of $1.25 at the end of the year. The required rate of return is RS = 11%, and the expected constant growth rate is G = 5%. What is the Stocks one year from today?

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Financial Management: The stock is expected to pay a dividend of 125 at the end

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