1. Assume Highline Company has just paid an annual dividend of $0.94. Analysts are predicting an 11.6% per year growth rate in earnings over the next five years. After? then, Highline's earnings are expected to grow at the current industry average of 5.3% per year. If? Highline's equity cost of capital is 8.4% per year and its dividend payout ratio remains? constant, for what price does the? dividend-discount model predict High line stock should? sell?
2. In planning your retirement you decide that you need to have $3 million at the beginning of your retirement which is 30 years from today. starting one year from today, you plan to make equal annual payments into a retirement account that will earn 145 INTEREST. how much should you contribute each year in order to reach your target? what if you wait 11 years to start making contributions?