Pete considers buying a house. Currently, he rents a place for 1,000 a month. The current monthly interest rate on mortgages is 0.5%. His planning
Pete considers buying a house. Currently, he rents a place for 1,000 a month. The current monthly interest rate on mortgages is 0.5%. His planning period is 20 years. If he doesn't want to increase his housing costs, what amount of mortgage is available for his purchase? Liphips Ltd has just paid a dividend per share of 1.20. Shares are valued only on the basis of expected dividends. An annual sustainable growth of dividends of 4% is assumed. The appropriate discount rate (i) is 10% per year. The planning horizon is limited to 20 years. Compute the share value.
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