Question #5 and question #6

FIN 330 Fall 2018 lnstructori Jiahao Gu 5. (10 points) You plan to invest $1,000 on the last day of every ycar for the nest 8 years. If the interest rate on the investment is 10% what is the value of your investment in 8 years? 6. (10 points) You are valuing the stock price of a public company. The company pays annual dividend. This year the company issues dividend of $0.8 per share. The analysts consider the company grows at a constant rate of 5%. The required return is 8%, what is the intrinsic value of the stock? If the current market price for the stock is $30 per share, would you purchase the stock or not purchase the stock? Page 4 of 5