Part 2: Short problems(d,e,f)

You are supposed to show which formulas you are using and/or which commands of financial calculator you are using, as well as your final numerical result. Please round all your answers up to 2 digits after decimal point (for example, cash flow should be written as $20.20 and interest rates should be written as 1.23%). Each problem is worth 4 points.

You purchased a stock a month ago and sold it today for $185. From this investment, you realized a capital gain yield of 2% and dividend yield of 8%. What was the price of the stock a month ago? A stock has just paid a dividend of $5. For the coming three years, it is expected to increase its dividends at 10% per year. After that, the growth rate is going to slow down to 4%. Suppose that required rate of return is 10%. What is fair price for this stock? Suppose that nominal interest rate on safe government bonds is 25%. If the real rate of these bonds is 12%, what is your estimate of inflation? Today is December, 31 of 2020 and you are considering to buy an annuity. Its current market price is $500. Interest rate is 10%. Annuity pays on the first day of each year, for 20 years (so that the first payment will be tomorrow). What is yearly payment of such annuity