1. What is the difference between credit rating and credit score and why are the important?
2. The annual rates of returns on ask inc over 35 year period are normally distributed. The average rate is 10% and variance of return is 81%. Find the range of returns for a given year with probability of 68%.
3. A corporation will pay a $2.00 dividend (D1) in the next 12 months. The required rate of return is 6 % and the constant growth rate is 4 %.Compute the stock price Po.