Question
Please answer with excel showing how to use excel functions to answer these questions, thank you! a. A firm's dividend per share grew from $1.00
Please answer with excel showing how to use excel functions to answer these questions, thank you!
a. A firm's dividend per share grew from $1.00 to $1.25 in four years. What was its annual growth rate during that period? (assume annual compounding)
b. You have won a game show prize of a trip across Europe in one year valued at $24,000. If instead, you are able to take the present value of the trip in cash, how much cash would you want if the rate you can earn is 5.5% annually, compounded monthly?
c. You plan to buy an Audi A8 on your 26th birthday. You have priced these cars and found that they currently sell for $82,250. You believe that the price will increase by 9% per year until you are ready to buy. You can presently invest to earn 7% annually. If you have just turned 20 years old, how much must you invest per year to be able to purchase the Audi according to your plans?
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