1. Abacus Corporation will pay dividends of $2.18, $2.96, and $3.09 in the next three years. After three years, the dividends are expected to grow at a constant rate of 6 percent per year. If the required rate of return is 13.83 percent, what is the current value of the Abacus common stock?
2. What is the annual percentage yield of a $10,000 investment for 1 year at 6% interest compounded monthly?