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Need Help with these, thanks. Explanations are helpful I have answers from study guide Kobe Durant is considering the purchase of a car, which will

Need Help with these, thanks. Explanations are helpful I have answers from study guide

Kobe Durant is considering the purchase of a car, which will cost him $125,000. He will borrow the entire purchase price and make monthly payments over the next five years. The first payment is due next month and the interest rate is 3.00%. He will owe $____ on the car immediately following the 27thpayment.

71,060.56

73,182.94

75,798.22

77,434.28

79,282.85

An investment will pay $32,000 per year forever beginning6 years from today. If the relevant rate is 10% compounded monthly, the investment is worth $______ today.

164,210.60

175,604.75

181,154.33

198,694.82

202,346.54

McDavids common stock has a beta of 1.40. The market risk premium, is 5% and the risk-free rate, rf, is 3%. McDavids expects to pay a dividend of $2.10 next year, and the dividend is expected to grow at 4% per year forever. The price of McDavids common stock should be $________.

31.50

35.00

38.50

42.00

42.50

American Graphics just paid a dividend of $3.00. AGs dividends will grow at 25% for the next two years and then 30% for the next year. After that, the dividend will grow at 4% forever. Assuming a 11% cost of equity, the current stock price should be $_____.

58.15

60.02

70.02

77.84

79.65

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