If the interest rate is 5.25%, what is the PV of the cash flows?

Year	CF
1	1000
2-7	3000
8-10	6000
11	8,000
12-15	15000

Answer: ____________________

Jerry is considering purchasing shares Brown Industries common stock. Brown paid a $3.00 dividend 5 years ago. Today, it paid a $4.21 dividend. If the market required rate of return on Brown common stock is 17%, what is a fair price for a share of Brown?

Calculate the rate at which the dividend grew over 5 years. This is a TVM application.

Round your growth rate to the nearest full percent.

Round 2 decimal places.

Answer: _________________________