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Answer the following questions. Table 6-4 or Table 6-5. (Use appropriate factor(s) from the tables provided....

Answer the following questions. Table 6-4 or Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.)  

Required:

  1. Spencer Co.'s common stock is expected to have a dividend of $3 per share for each of the next 10 years, and it is estimated that the market value per share will be $137 at the end of 10 years. If an investor requires a return on investment of 14%, what is the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today?
  2. Mario bought a bond with a face amount of $1,000, a stated interest rate of 12%, and a maturity date 14 years in the future for $987. The bond pays interest on an annual basis. Three years have gone by and the market interest rate is now 12%. What is the market value of the bond today?
  3. Alexis purchased a U.S. Series EE savings bond for $100, and six years later received $141.84 when the bond was redeemed. What average annual return on investment did Alexis earn over the six years?
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