1. Gulf oil inc. reported the following common equity account in its balance sheet. The company just declared 10 percent stock dividend when the market value of its stock was $20 per share. What is the capital surplus account after the 10 percent stock dividend?
2. Low-risk investors should assume an interest rate of 6% annually. Moderate-risk investors should use 8%, high-risk investors should assume 10%, and ultra high-risk investors should use 12%. For purposes of this calculation, ignore any Social Security benefit received.
Assume you are 22 years old and want to have a $1,600,000 at retirement (age 70). How much do you need to save each quarter to reach your goal if you are a low-risk investor?
A - 1,559
B - 2,009
C - 1,460
D - 2,079