The dividends on the common shares of Mosco Inc. are forecast to grow at 10% per year for the next five years. Thereafter, the best guess is that the annual dividend will grow at the same 3% annual rate as the nominal GNP. A $2.00 dividend for the past year was recently paid. Assume that the required rate of return is 9% compounded annually. What is the fair market value of the shares if we ignore all dividends beyond a 30-year time horizon?

Round the following to four-figure accuracy: 0.0090909

Calculate the effective annual rate for 14.4% compounded monthly.

A) 15.4%
B) 12.8%
C) 16.4%
D) 13.8%
E) 17.1%

A security deposit is used by a landlord to provide protection for the tenants.

On some personal loans, Buckhorn County Bank & Trust uses the discount method of calculating finance charges. For the two loans below, calculate the discount amount that Buckhorn Bank is charging and the proceeds that go to the borrower. Then calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 360-day year and compute actual rates to the nearest 1/100 of a percent.
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