1. The security is currently selling for $50 per share that has a 16% expected return and a 10% expected capital appreciation?

a. It is expected to pay $3 in annual dividends.

b. Its expected dividend exceeds the actual dividend.

c. Its expected return will exceed the actual return.

d. It is expected to pay $8 in annual dividends

2. I am going to reward myself for graduating from the University of Utah, so I want to buy a new car that will cost me $18,000. I can qualify for an annual interest rate of 3.0% and I want to finance for 6 years, monthly payments. What will my monthly payment be?

3. I can earn at least 10% a year just by investing in securities that mirror an index, and I want to invest $10,000 and leave it to accumulate for 35 years,

what will be the present value of this investment?