You forecast that Dull company will pay a dividend of D₁=$40 at the end of this year. The dividend will decline in the second year (D₂=$20). After the second year, dividends will then grow at an annual rate of 10% (For example, D₃=$22, D₄=$24.2,...). What is the current fair price of the Dull stock when the required/expected return is 20%?

A. $168.06
B. $175.00
C. $188.89
D. $200.00
E. $206.67

What does the consumer price index measure? a. the change in prices of all goods and services over time b. the change in prices of specific goods and services over time c. the change in prices of final goods and services over time

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?