Your anticipated wedding is three years from today. You don’t know who your spouse will be but you do know that you are saving $10,000 today and $17,000 one year from today for this purpose. You also plan to pay the final $12,000 of anticipated costs on your wedding day. At a discount rate of 5.5 percent, what is the current cost of your upcoming wedding?

Red Sun Rising just paid a dividend of $2.40 per share. The company said that it will increase the dividend by 30 percent and 25 over the next two years, respectively. After that, the company is expected to increase its annual dividend at4.2 percent. If the required return is 11.4 percent, what is the stock price today?

You are comparing two investment options that each pay 6 percent interest compounded annually. Both options will provide you with $12,000 of income. Option A pays $2,000 the first year followed by two annual payments of $5,000 each. Option B pays three annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? Assume a positive discount rate. (No calculations needed.)

Myers has preferred stock outstanding that pays a cumulative $1.50 dividend per quarter. This company has not paid any of its dividends for the past two quarters. How much must be paid as a dividend for each share of preferred stock if the company plans to pay a dividend to its common shareholders this upcoming quarter?

Domingo Electric has a PEG ratio of 5.3, net income of $49,200, a price-earnings ratio of 17.6, and a net profit margin of 7.1 percent. What is the earnings growth rate?

Mockingbird Resources is expected to pay a dividend of $2.71 per share in one year. Thereafter, dividends will grow two percent per year forever. The current stock price is $19.60. If you require a return of 15 percent per year, should you buy the stock today? Why or why not?

You feel that you will need $2.9 million in your retirement account and when you reach that amount, you plan to retire. You feel you can earn an APR of 10.9 percent compounded monthlyand plan to save $410 per month until you reach your goal. How many years will it be until you reach your goal and retire?

A stock currently sells for $51. The dividend yield is 2.9 percent and the dividend growth rate is 4.2 percent. What is the amount of the dividend that was just paid?

Leslie’s Unique Clothing Stores offers a common stock that pays an annual dividend of $3.10 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 14.50 percent on your equity investments?

What is the future value of $2,800 per year for 20 years at an interest rate of 6.87 percent?