Movcn Hank is offering an account that pays a simple 29%, compounded quarterly;

Question

Movcn Hank is offering an account that pays a simple 29%, compounded quarterly; what is the effective annual rate ? Tofrandi Naturals just paid a dividend of $2.84. You expect a growth rate of 5% for 3 years. After that, they are expected to grow at 11%. Your required return to hold this stock is 21%. How much is this stock worth ? Compute the present value of an ordinary annuity receiving 7 annual payments of $58 at an interest rate of: 6% Thora is considering buying a BMW bond for $674,205. This bond has a maturity value of $757, maturing in 3 years, with comparable interest rates of 12%, and coupon payments of $43. What should she pay ? Parker Sled Manufacturing has been paying an annual dividend of $4.98 for the past 5 years, and plans to continue for the next 4 years. After that, they are expected to grow at 4%. Your required return to hold this stock is 18%. What would you be willing to pay for this stock ? BAMEB Motorcycles just paid a dividend of $5.27. You expect a growth rate of 21% for 2 years. After that, they are expected to grow at 22%. Your required return to hold this stock is 25%. How much is this stock worth ? You received a dividend of $5.63 this morning and are attempting to decide if you should hold onto this stock. You expect this stock to grow at 13% for 9 years. After that, you think they will grow at 18%. Given the level of risk, you need a return ofI9%. How much is this stock worth?

Explanation / Answer

EAR = (1+APR÷n)^n-1

n is number of compounding per year

= (1+29%÷4)^4-1

= 32.31%

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