1. Your company is in need of financing of environmental investments. Three banks have offered loans. The first bank offers 4.5% interest, with biannual compounding. The second bank offers 4.3% interest, with monthly compounding. The third bank offers 4.25% with annual compounding. Determine which is is the best offer
2. A stock has just paid a dividend of 10. Dividends are expected to grow with 10% a year for the next 2 years. After that the company is expecting a constant growth of 2% a year. The required return on the stock is 10%. Determine todays stock price.