1. We consider the following cash ows which are in the table below, interest rate 6 % p.a. Frequency of compounding is once a year. Calculate PV, F'v'a , FUN, Wm _El 100 2. How much principal will you have to pay in the second year if you take a loan requiring you to pay equal installments of $9000 at the end of each of the next ve years? The bank charges a 6 % annual interest rate. 3. The earnings and dividends of a company are expected to increase at a constant rate of 3 percent per yea r. a. Assuming the last annual dividend was $4 and the required rate of return is 12%, what is the value of the company's stock? b. What value would you expect the stock to have in four years' time