To raise 980000 a company draws up a bill of exchange with


1. ABC Ltd has just paid a dividend of $5 per share yesterday. The company has a constant dividend growth rate of 4 percent and this growth rate is expected to be maintained indefinitely. The required rate of return on ABC share is 8 percent per annum. What is the value of each ABC shares today?

2. To raise $980,000, a company draws up a bill of exchange with a face value of $1,000,000, payable in 40 days. What is the implicit annual market interest rate on the bill?

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Basic Computer Science: To raise 980000 a company draws up a bill of exchange with
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