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1. We consider the following cash ows which are in the table below, interest rate 6 % [3.3. Frequency of compounding is once a year.
1. We consider the following cash ows which are in the table below, interest rate 6 % [3.3. Frequency of compounding is once a year. Calculate PV, F'lrla , FVN, FVm _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. 3. 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
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