1. BioSci, Inc., a biotech firm has forecast the following growth rates for the next three years: 35 percent, 28 percent, and 26 percent. The company then expects to grow at a constant rate of 8 percent forever. The company paid a dividend of $2.50 last week. What are the dividends expected over the next four years? (Round final answers to one decimal place)
2. Beckham Corporation has semiannual bonds outstanding with 10 years to maturity and the bonds are currently priced at $756.16. If the bonds have a coupon rate of 9.5 percent, then what is the after-tax cost of debt for Beckham if its marginal tax rate is 35%? Round your intermediate calculation to two decimal places and final percentage answer to three decimal places.