1. If I will have $25,000 in 10 years, will earn 10% interest annually on my investment, will not make any payments during the interim, how much must I invest today? -What are you solving for? -What is your answer?
2. Our company has $100 million in Common Stock and no preferred stock, the company's tax rate is 25%, each share is currently selling for $125.00, dividends for the past 5 years have been: 2015 $3.50 2014 $3.04 2013 $2.65 2012 $2.30 2011 $2.00 What is our required return for Common Stock?