a. Spencer Co.'s common stock is expected to have a dividend of $4 per share for each of the next eight years, and it is estimated that the market value per share will be $109 at the end of eight years. If an investor requires a return on investment of 8%, what is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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b. Mario bought a bond with a face amount of $1,000, a stated interest rate of 10%, and a maturity date thirteen years in the future for $986. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 4%. What is the market value of the bond today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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c. Alexis purchased a U.S. Series EE savings bond for $150, and six years later received $212.77 when the bond was redeemed. What average annual return on investment did Alexis earn over the six years?

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rev: 04_25_2016_QC_CS-49949