Author Question: What is the maximum price Erica should pay for Rangoon Corp. common stock if her required return is ... (Read 107 times)

ereecah · **on:** Jul 10, 2018

What is the maximum price Erica should pay for Rangoon Corp. common stock if her required return is 5 and she expects to sell the stock in one year for 50 per share,

immediately after she receives a .50 per share dividend? (Round to the nearest tenth.)
A) 50.00
B) 48.10
C) 48.00
D) 45.00
E) 40.73

Question 2

You just took out a 12,000 loan for your small business. The loan has a four year term and repayment is in the form of four equal end-of-year payments. The interest rate on the loan is 11.5. What are your annual loan payments?

A) 3,909.29
B) 3,287.78
C) 3,144.83
D) 3,246.84
E) 3,867.92