3. Buffett stock will pay a dividend this year of $2.40 per share. Its dividend yield is 8%. At what price is the stock selling?
4. You need $700 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal?
The solution explains how to calculate the price of the stock and the present value needed for a given future amount.