Question: Briefly explain the impact that compounding interest, more often than annually, has on the future value, given an initial investment. 2. Professor Dom wishes to

Briefly explain the impact that compounding interest, more often than annually, has on the future value, given an initial investment.

2. Professor Dom wishes to set up a permanent scholarship paying $5,000 per annum, at the beginning of each year, for a promising finance student. How much would he need to invest, if interest on this type of investment is 11% compounded monthly?

3. Finch Ltd. paid a $4.20 dividend last year. If the company's dividends are expected to grow 5%p.a., what is the value of each ordinary share, if the investor's required rate of return is 17%?

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