The Jameson Company expects to pay a dividend $1.85 per shar…

The Jameson Company expects to pay a dividend $1.85 per share (D1 = $1.85), and expected growth is 3.50% per year in the future. The company’s beta is 1.25, the market risk premium is 5.00%, and the risk-free rate is 3.50%. (Suppose markets are in equilibrium). What is Jameson’s current stock price, P0?

A security is currently selling for $10,000 and promises to…

A security is currently selling for $10,000 and promises to pay $1,500 annually for the next 10 years, and $1,000 annually in the 2 years thereafter with all payments occurring at the end of each year. If your required rate of return is 7%, should you buy this security?