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1) Piscain Pay Inc. expects to pay a dividend of $410,000 at the end of the year

ID: 2772787 • Letter: 1

Question

1) Piscain Pay Inc. expects to pay a dividend of $410,000 at the end of the year and projects a growth in dividends of 6.46 percent per year. If k is 14.75 percent and it expects to grow for another five years, what is the present value of the dividends?

A) 1791509.76

B) 1791529.76

C)1791549.76

D)1791569.76

E) None of the Above (This answer is incorrect)

2. How many years does it take for an annual payment of 2,340 to grow to 48,000, assuming k= 2.75%, compounded weekly?

A) 16.25

B) 16.45

C) 16.65

D) 16.85

E) None of the Above (this answer is incorrect)

Explanation / Answer

'=NPER(rate,pmt,pv,fv) '=NPER(0.0275,2340,48000) -16.4885