1. Expected Return Circuit City Stores (CC) recently paid a $.24 dividend. The dividend is expected to grow at a 23.80 percent rate. At the current stock price of $8.76, what is the return shareholders are expecting?
a) 23.80%
b) 2.74%
c) 27.19%
d) 23.83%
2. Future Value Given a 8.00 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,900, $2,100, $2,400, and $2,400.
a) $10,894.48
b) $11,471.42
c) $9,292.50
d) $10,644.92