Sew ‘N More just paid an annual dividend of $1.42 per share. The firm plans to pay annual dividends of $1.45, $1.50, and $1.53 over the next 3 years, respectively. After that time, the dividends will be held constant at $1.60 per share. What is this stock worth today at a discount rate of 11.7 percent?

Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you speed up your plans to enable you to graduate two years from now, the present value of the promised gift will:

Which one of the following has the least effect on a firm’s sustainable rate of growth?

Four years ago, Lallana Properties issued $1,000 par value, 7-year bonds. Today, the bonds are yielding 8.27 percent per year. The annual inflation rate is 2.24 percent. What is the real rate of return on the bonds?

You’re trying to save to buy a new $68,000 sports car. Currently, you have saved $36,840 which is invested at 4.9 percent annually compounded interest. How many years will it be before you purchase the car, assuming the price of the car remains constant?

Your credit card company charges you 1.40 percent per month. What is the EAR on your credit card?

A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume the firm:

Caroline is going to receive a award of $20,000 six years from now. Jiexin is going to receive an award of $20,000 nine years from now. Which one of the following statements is correct if both individuals apply a discount rate of 7 percent?

All of the following issues represent problems encountered when comparing the financial statements of two separate entities except the issue of the companies:

Paige wants to have $40,000 for a down payment on a house five years from now. She can either deposit one lump sum today or wait one year and deposit a lump sum then. Assume an interest rate of 3.5 percent, compounded annually. How much additional money must she deposit if she waits for one year rather than making the deposit today?