1. ASSUME that in 25 years you will need $500,000 for your retirement (i.e. retirement is actually 25 years away, and you want to have saved $500,000). If you will make equal MONTHLY payments at the end of each MONTH for the next 25 years to fund your retirement, what is the amount of the MONTHLY payments required to fund your retirement? Assume the 8% APR discount rate with monthly compounding for this question.
3859
3903
570
526
2. You own 460 shares of WS stock. The company plans on issuing a dividend of $.90 a share one year from today and then issuing a final liquidating dividend of $5.40 a share two years from today. Your required rate of return is 14 percent. Ignoring taxes, what is the value of your total holdings in this stock?