1. This morning, you bought 774 shares of ABC Inc. for $44.36 each. Right after you bought these shares, ABC Inc.'s earnings report came out. You now think they will grow at 0% and require a return of 16%. Their most recent dividend was $7.47. What is your total profit(loss)?
2. Compute the current market value of a bond with a $784 face value, maturing in 9 years, an interest rate of 10%, and annual payments of $64
3. Compute the present value of an ordinary annuity receiving 7 annual payments of $29 at an interest rate of: 21% (round to 2 decimal places)
4. Compute the Present Value of a payment of $181 received in 2 years at a discount rate of 5%.
5. The last dividend for ABC Manufacturing was $3.50, and the expected growth rate is 6 percent. If you require a return of 12 percent, what is the most that you would pay for this stock?