1. Crystal Glass recently paid $3.60 as an annual dividend. Future dividends are projected at $3.80, $4.10, and $4.25 over the next three years, respectively. Beginning four years from now, the dividend is expected to increase by 3.25 percent annually. What is one share of this stock worth to you today if you require a 12.5 percent rate of return on similar investments?
A. $42.92
B. $43.40
C. $45.12
D. $45.88
E. $46.50
2. Phoebe realizes that she has charged too much on her credit card and has racked up $5,900 in debt. If she can pay $225 each month and the card charges 16 percent APR (compounded monthly), how long will it take her to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.)