Author Question: You wish to deposit 7,000 in an account at the Shylock Bank. The bank pays interest at a nominal ... (Read 125 times)

Hungry! · **on:** Jul 10, 2018

You wish to deposit 7,000 in an account at the Shylock Bank. The bank pays interest at a nominal annual rate of 10 compounded monthly. What is the future value in the account after seven years?

A) 14,055.44
B) 13,975.47
C) 13,641.02
D) 13,336.23
E) 14,726.68

Question 2

A stock just paid a dividend of 1.15, has a required rate of return of 17, and a constant dividend growth rate of 3. What price should this stock be selling for?

A) 17.08
B) 8.21
C) 8.46
D) 1.22
E) 6.05