The current price of Houston Tennis Inc. Stock is $50. Dividends are expected to grow at 4% indefinitely and last dividend was $2.0. What is the required rate of return on Houston Tennis Inc.?

You borrow $2,000 to buy a car at 12% interest compounded monthly. How much are your monthly payments if your plan to pay off the auto in three years? [PVIFA(1,36)=30.1114].

How much would you be willing to pay for an investment which paid you $100 at the end of each year for seven years? Assume you can earn 12% a year on other types of investments.