A fast growth share has the first dividend (t=1) of $2.35. Dividends are then expected to grow at a rate of 8 percent p.a. for a further 3 years. It then will settle to a constant-growth rate of 3.0 percent. . If the required rate of return is 14 percent, what is the current price of the share? (to the nearest cent)

Select one:

a. $24.03

b. $53.84

c. $21.36

d. $26.44

Amortization schedule with periodic payments.

  Moulton Motors is advertising the following deal on a used Honda​ Accord: ​ "Monthly payments of ​$233.92 for the next 48 months and this beauty can be​ yours!" The sticker price of the car is $9,400. If you bought the​ car, what interest rate would you be paying in both APR and EAR​terms? What is the amortization schedule of the first six​ payments?

An all equity firm pays a dividend of $1 in first year, a dividend

of $2 in second year which then grows at a constant rate of 5% for the next ten years. After that, the company has promised to pay a fixed dividend of $4 annually. If the cost of equity is 15%, what is the share price?

Select one:
a. $20.33
b. $22.60
c. $23.25
d. $21.5

A $66 stock pays a dividend of $1.40 every 3 months, with the first dividend coming 3 months from today. The continuously compounded risk-free rate is 6%. What is the price of a prepaid forward contract that expires 6 months from today, immediately after the second dividend?

a. $65.19

b. $64.62

c. $63.26

d. $63.20

e. $63.37

A fast growth share has the first dividend (t=1) of $1.94. Dividends are then expected to grow at a rate of 7 percent p.a. for a further 4 years. It then will settle to a constant-growth rate of 3.0 percent. . If the required rate of return is 16 percent, what is the current price of the share? (to the nearest cent)

Select one:

a. $16.75

b. $50.49

c. $14.92

d. $11.90

Amortization schedule with periodic payments. Moulton Motors is advertising the following deal on a used Honda​ Accord: ​ "Monthly payments of $307.74 for the next 36 months and this beauty can be​ yours!" The sticker price of the car is $9,400. If you bought the​ car, what interest rate would you be paying in both APR and EAR​ terms? What is the amortization schedule of the first six​ payments?

Amortization schedule with periodic payments. Moulton Motors is advertising the following deal on a used Honda​ Accord: ​ "Monthly payments of $238.11 for the next 54 months and this beauty can be​ yours!" The sticker price of the car is ​$9,500. If you bought the​ car, what interest rate would you be paying in both APR and EAR​ terms? What is the amortization schedule of the first six​ payments?

Amortization schedule with periodic payments. Moulton Motors is advertising the following deal on a new Honda​ Civic: "Monthly payments of $595.39 for the next 36 months and this beauty can be​ yours!" The sticker price of the car is $19,000. If you bought the​ car, what interest rate would you be paying in both APR and EAR​ terms? What is the amortization schedule of the first six​ payments?

ABC ins's first quarterly dividend of 2$/share is expected to be paid nine months from today. Then on, dividends will decline by 2% per quarter for next three years. After three years, the dividends will start increasing by 1% per quarter in perpetuity. Assume that ABC's required rate of return is 15% (effective annual rate). What is the price of a share of ABC today?

2. Handbag Ltd issued 2000 ordinary shares of P5 at an issue price of P8. Payment for the shares was made as follows: On application P2, on allotment P4 (including share premium), on first call P1 and on second call P1. Applications were received for 2000.All the instalments were received on due dates. Prepare relevant accounts to record the above issue of shares.