1. Your parents will retire in 17 years. They currently have $230,000 saved, and they think they will need $1,550,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. %
2. Andover Property has expected earnings before interest and taxes of $1,035,000, an unlevered cost of capital of 11.80 percent, and a tax rate of 35 percent. The company has $600,000 of debt that carries a 7 percent coupon. The debt is selling at par value. What is the value of this firm?