The current stock price is selling for $64 and has a dividend growth rate of 2%. Investors require a rate of return of 12%. What would you expect the annual dividend to be?

Please ensure that you are precise in your calculations. Final answers should be rounded to two decimal places and presented in Canadian currency style, (i.e. if your calculated answer is 345.5667 your response should be $345.57)

2.Using the Gordon Growth Model

If the required return is 8%, the growth rate of dividends is constant at 2% and the most recent dividend is $0.48 per share. What is the current value of the stock?

Please ensure that you are precise in your calculations. Final answers should be rounded to two decimal places and presented in Canadian currency style, (i.e. if your calculated answer is 345.5667 your response should be $345.57)

3.What is the present value of $1000 to be paid in four years if the interest rate is 6%? (Round your final answer, and keep two decimal places).

4.A simple loan with a present value of $5500 will be paid off in 5 years. If the interest rate is 7% what will the future payment be? (Round your final answer, and keep two decimal places).

5.What is the present value of $1475 to be paid in three years if the interest rate is 11%? (Round your final answer, and keep two decimal places).