1. TechNo Corp is a rapid-growth IT firm. TechNo expects to grow at 25% for the next four years. After year four, growth will moderate at 4.75%. TechNo expects to pay a dividend of $1.59 per share next year. If TechNos required return is 13.2% and the stock is currently selling at $45.77 per share, is the stock fairly valued? If not, by how much is it over- or under-valued?

Answer: No, the stock is over-valued by $15.71 per share

Jenna owns a 7% bond that has an 8.2% yield to maturity and 10 years to maturity. If the yield to maturity on the bond increases to 9.2%, how much will the bond change in value?

Answer: Decrease by $61.03

3. Stan wants to have $150,000 available in four years. What size quarterly deposits does Stan have to make into an account that pays 5.6% annual interest compounded quarterly to accomplish his goal? Assume the first deposit is made in one quarter.

Answer: $8,429.37

sized annual withdrawals can Slim make from the account if the first withdrawal occurs in 2017 and the last occurs in 2022?

Answer: $1,393.87

how are these answers found WITH FORMULAS