1. Statement of Retained Earnings Z, Corp. began the year 2008 with $2.1 million in retained earnings. The firm earned net income of $6.4 million in 2008 and paid $2.89 million to its common stockholders. What is the year-end 2008 balance in retained earnings for Z?
2. If you invest in 5% coupon, 3 year TIPS and inflation is 3% each year, what are your nominal annual cash flows?