Answer the following questions. Table $6-4$ or Table $6-5.$

Note: Use appropriate factor$($s$)$ from the tables provided. Round the PV factors to $4$ decimals.

Required:

a$.$ Spencer Company's common stock is expected to have a dividend of $$7$ per share for each of the next $14$ years, and it is estimated that the market value per share will be $$107$ at the end of $14$ years. If an investor requires a return on investment of $8\%,$ what is the maximum price the investor would be willing to pay for a share of Spencer Company common stock today?

b$.$ Mario bought a bond with a face amount of $$1,000,$ a stated interest rate of $8\%,$ and a maturity date $11$ years in the future for $$977.$ The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now $8\%.$ What is the market value of the bond today?

c$.$ Alexis purchased a U$.$S$.$ Series EE savings bond for $$150,$ and six years later received $$212\mathrm{.}77$ when the bond was redeemed. What average annual return on investment did Alexis earn over the six years?

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Required C

Spencer Company's common stock is expected to have a dividend of $$7$ per share for each of the next $14$ years, and it is estimated that the market value per share will be $$107$ at the end of $14$ years. If an investor requires a return on investment of $8\%,$ what is the maximum price the investor would be willing to pay for a share of Spencer Company common stock today? Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Show less $4$

Maximum price

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$99\mathrm{.}47$