Pete considers buying a house. Currently, he rents a place for 1,000 a month. The current monthly interest rate on mortgages is 0.5%. His planning period is 20 years. If he doesn't want to increase his housing costs, what amount of mortgage is available for his purchase?   Liphips Ltd has just paid a dividend per share of 1.20. Shares are valued only on the basis of expected dividends. An annual sustainable growth of dividends of 4% is assumed. The appropriate discount rate (i) is 10% per year. The planning horizon is limited to 20 years. Compute the share value. 

Answer rating: 100% (QA)

To determine the amount of mortgage available for Petes house purchase without increasing his housin... View the full answer