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1) Verify an1=sn1+i 2) What is the expected return on investment for a share of XYZ common stock selling at $105, paying a $4.15 dividend,
1) Verify an1=sn1+i 2) What is the expected return on investment for a share of XYZ common stock selling at $105, paying a $4.15 dividend, with an anticipated growth of 5% ? 3) A $10,000xCorporation9%(2) debenture matures on November 1,2018 . Coupon dates are May 1 and November 1. Find the value of this bond on May 1, 2004 to yield 8%(2) ? 4) A restaurant reports a current net annual income of $180 million. Assuming that the income of this corporation remains stable and is reinvested continuously at 8% (infinity), what is the 10-year present worth of the income stream? 5) Suppose that money flows into an account beginning at a rate of $3000 per year and increasing continuously at 10% per year for 5 years. If the interest is 5%, what is the present value of the stream of payments? Find the income rate as an explicit function of time
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