A new $300,000 mortgage for 30 years can be obtained with principal and interest payments of $2,193.41, with no discount points. A mortgage that has a slightly lower interest rate has payments of $2,126.00, but the borrower must pay two points. Using simple arithmetic, how many months will it take him to break even on the lower interest-rate loan

Storico co. just paid a dividend of $3.15 per share. the company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. if the required return on the company’s stock is 12 percent, what will a share of stock sell for today?