What aspects of consumption do we care about for investment


1. Suppose a firm's stock is selling for $15. It just paid a $2 dividend, and dividends are expected to grow at 4% per year. What is the required return?

2. If you borrow $15,618 and are required to pay back the loan in seven equal annual installments of $3,000, what is the interest rate associated with the loan?

 

3. What aspects of consumption do we care about for investment purposes?

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Financial Management: What aspects of consumption do we care about for investment
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