FINANCENYU

Using the one period valuation model, assuming a year-end dividend of $2, an expected sales price of $120, and a required rate of 5%, the current price of the stock is?

2. If your nominal income in 1995 was $40,000, and prices increased 1.5 times between 1995 and 2003, the have the same real income, your nominal income in 2003 must be?

A. $75,000 B. $90,000 C. $100,000 D. $60,000