1. Adam borrows $4,500 at 12 percent annually compounded interest to be repaid in four equal annual installments. The actual end-of-year payment is: $_________. (Please calculate the arithmetic solution and show your work) 2. Tina’s Medical Equipment Company paid $2.25 common stock dividend last year. The company’s policy is to allow its dividend to grow at 5 percent per year indefinitely. What is the value of the stock if the required rate of return is 8 percent? (Please calculate the arithmetic solution and show your work)
