1. Tulip Industries just paid out a dividend of $3.77. The dividend is expected to grow at 6% every year. What is the price you would pay for Tulip's stock if investors require a 15% return on similar companies? (Round to the nearest cent in your calculations). Show your Work.
2. You just got $60,000 from an inheritance and want to withdraw amounts of $2,595.74 each quarter. If the rate is 12%, how long can you do this? Round to the closest value. YOU MUST SHOW YOUR WORK You MUST include: 1. Identify the type of problem. 2. Write out the formula identifying the rate and term in the factor. 3. Solve with a complete formula.