Author Question: A firm's stock price is $25 per share and is expected to grow at a 5% compound annual rate. What ... (Read 45 times)

CBme · **on:** Apr 25, 2021

Question 1

$100 is received at the beginning of year 1, $200 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year three is (Round to the nearest whole dollar)
◦ $672.
◦ $536.
◦ $427.
◦ $364.
◦ $336.

Question 2

A firm's stock price is $25 per share and is expected to grow at a 5% compound annual rate. What should the stock price per share be in five years?
◦ $26.25
◦ $125.00
◦ $75.00
◦ $31.91
◦ $69.66

tofugiraffe · **Reply #1 on:** Apr 25, 2021

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