1. Rizzi Co. is growing quickly. Dividends are expected to grow at a 25% rate for the next three years, with the growth rate falling off to a constant 7% thereafter. If the required return is 13% and the company just paid a $3.10 dividend, what is the current share price?
2. You have accumulated some money for your retirement. You ae going to withdraw $98,844 every year at the end of the year for the next 29 years. How much money have you accumulated for your retirement? Your account pays you 19.14 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.