A firm has 200 shareholders, you among them. Each shareholder owns $20 worth of stock. In addition, Mr. Hostile owns 50 shares (for a firm total of 250 shares) and is trying to fire the management. In an attempt to buy him off, management has offered to buy Mr. Hostiles shares for $28. What will the new share price be?

12.The stock of Static Corporation has a beta of 0.7. If the expected return on the market increases by 6%, the expected return on Static Corporation should increase by?

14.A firm currently pays a dividend of $0.10 a share. The dividend is expected to grow at the rate of 16% for the next five years before slowing to a constant growth rate of 5% indefinitely. If you require an 18% return on this firm's stock, what is the maximum price you would pay for it?

15.Blake has borrowed $30,000 on a 3-year note to buy a car. The loan requires equal monthly payments of principal and interest, with the first payment due one month after the loan is signed. The quoted interest rate is 7%. What will Blake's monthly payments be? Round your answer to the nearest dollar

16.Calculate the monthly payment due on a 30 -year, fixed-rate, $250,000 mortgage if the quoted interest rate is 4.8%.

17.A $50,000, level-coupon Eurobond has a 6% coupon and matures in ten years. At what price should the bond sell today if the prevailing interest rate is 8% per annum? Round your answer to the nearest dollar.

18.A financial advisor says she has an investment that will pay you $500 a month forever. It will cost you $25,000 today. What effective annual rate (EAR) will you earn on this investment?

19.If you make an investment that earns 10% the first year, -5% the second year, -2% the third year, and 12% the fourth year, what is your total 4 -year return?

20.If you make an investment that earns 10% the first year and loses 10% the second year, what is your total 2-year return?