1. The operating and maintenance costs of an operation are expected to increase at 0.2% per month. The O&M cost for this month is $2250. For an interest rate of 12% compounded monthly, calculate the equivalent equal annual cost for a 10 year period.
2. A firm's stock price is currently $48 per share. The company will pay a $3 dividend next year and investors require a 10% rate of return for investing in this stock, what is the growth rate that investors anticipate for this company's dividends?