1. Thirsty Cactus Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely. If the required return is 13 percent, what is the price of the stock today?
2. What annual investment at 15% per year compounded semi-annually is required to provide $200,000 at the end of 20 years?