Finance Assignment | Professional Writing
1. IBM pays dividends once a year. The company just paid a dividend of $3.50 and management expects this dividend to grow at a constant rate of 6.5 percent forever. If the required rate of return is 15 percent, what is the price of this stock?
2. An investment requires you to deposit $5,000 into an account today. If the compound rate of growth is 8 percent per year, what will this investment be worth in 30 years?
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