1. What advantages do you feel are realized through being familiar with spot rates when considering international financial management?
2. Assume that a company’s beginning-of-period price is $15 per common share, its dividends are $1 per share, and its expected cost of equity capital is 10%. What is the expected end-of-period price per common share?
3. The preferred stock of ABC Co. offers an 8.4% rate of return. The stock is currently priced at $50.00 per share. What is the amount of the annual dividend five years from today?