1. Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of $1,000 for 5 years and then withdraws the remaining amount 10 years from now. How much will she be able to withdraw 10 years from now, assuming the bank pays 6 percent compounded annually?
2. A share of stock is now selling for $100. It will pay a dividend of S9 per share at the end of the year. Its beta is 1.00. What do investors expect the stock will sell for at the end of the year?