1) Suppose you deposited $10,000 into a savings account today. The account pays a nominal annual interest rate of 12%, but interest is compounded quarterly. Assuming that you make no additional deposits into or withdrawals from the account, what will your ending balance be 10 years from today?

2) A firm expects to pay dividends at the end of each of the next four years of $2.00, $2.50, $2.50, and $3.50. If growth is then expected to be constant at 8 percent per year forever, and if you require a 14 percent rate of return, how much should you be willing to pay for this stock?

3)Electric Corp. just paid a $2.40 annual cash dividend. It plans to keep the future cash flows to the equity holders at this level for the foreseeable future as no future growth is expected. If the required rate of return by common stockholders is 12 percent, what is the price of this common stock?