Your company is in need of financing of environmental investments.

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.