Required:

1. Spencer Co.'s common stock is expected to have a dividend of $7 per share for each of the next 15 years, and it is estimated that the market value per share will be $124 at the end of 15 years. If an investor requires a return on investment of 12%, what is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today?
2. Mario bought a bond with a face amount of $1,000, a stated interest rate of 6%, and a maturity date 16 years in the future for $987. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 12%. What is the market value of the bond today?
3. Alexis purchased a U.S. Series EE savings bond for $100, and six years later received $141.84 when the bond was redeemed. What average annual return on investment did Alexis earn over the six years?