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Q8 9.If your stock paying annual dividends will pay a dividend D1 at t=1 of $1.57...

Q8

9.If your stock paying annual dividends will pay a dividend D1 at t=1 of $1.57 and have a growth rate of  11% between t=1 and t=2, and with a constant growth rate of 5% thereafter into the future, what should be the value of the stock at t=0 if the expected rate of return for the stock is 7%? Notice that in this problem, expected dividends are given at t = 1, not t = 0! Answer to the nearest cent as in xx.xx and enter without the dollar sign.

10. You have $100,000 in a saving account earning 9.8 percent per year. You now want to make 4 equal yearly withdrawals depleting the saving account. How much are your withdrawals? Answer to the nearest cent, xxx.xx and enter without the dollar sign.

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