Question: Please answer with excel showing how to use excel functions to answer these questions, thank you! a. A firm's dividend per share grew from $1.00

Please answer with excel showing how to use excel functions to answer these questions, thank you!

a. A firm's dividend per share grew from $1.00 to $1.25 in four years. What was its annual growth rate during that period? (assume annual compounding)

b. You have won a game show prize of a trip across Europe in one year valued at $24,000. If instead, you are able to take the present value of the trip in cash, how much cash would you want if the rate you can earn is 5.5% annually, compounded monthly?

c. You plan to buy an Audi A8 on your 26th birthday. You have priced these cars and found that they currently sell for $82,250. You believe that the price will increase by 9% per year until you are ready to buy. You can presently invest to earn 7% annually. If you have just turned 20 years old, how much must you invest per year to be able to purchase the Audi according to your plans?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!