1. You want to buy a new car today for $15,000. the finance office at a dealership quotes you 12% annual rate on a 24 month loan. what is your monthly car payment? show all work
2. Dividends per share of a company are expected to be $3, $5, and $4 for the next three years. Thereafter, the trend rate of growth is forecast to be 10% annually. To obtain a return of 15%, an investor would be willing to pay approximately $______ for the stock.
3. Donaldson,Inc. spends $1116,000 a week to pay billsand maintains a lower cash balance of limit of $35000.The standard deviation of disbursements is $9000. The applicable weekly interest rate is 0.05% and the fixed cost of transferring funds is $12. What is your optimal average cash balance based on the Miller-Orr model?
a. 48,333.33
b. 50119.05
c. 42623.33
d. 46334.09
e. 47108.16