Fowler is expected to pay a dividend of $1.63 one year from…

Fowler is expected to pay a dividend of $1.63 one year from today and $1.78 two years from today. The company has a dividend payout ratio of 45 percent and the PE ratio is 18.05 times. If the required return on the company’s stock is 11 percent, what is the current stock price?

You have some property for sale and have received two offers…

You have some property for sale and have received two offers. The first offer is for $89,500 today in cash. The second offer is the payment of $35,000 today and an additional guaranteed $70,000 two years from today. If the applicable discount rate is 11.5 percent, which offer should you accept and why?