1. You are saving for retirement. To live? comfortably, you decide you will need to save $3 million by the time you are 65. Today is your 34th ?birthday, and you? decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 4 % how much must you set aside each year to make sure that you will have $3 million in the account on your 65th birthday?
2. Bill's Boards has 20.4 million shares of common stock outstanding, 4.4 million shares of preferred stock outstanding, and 24.00 thousand bonds. If the common shares are selling for $30.40 per share, the preferred share are selling for $17.40 per share, and the bonds are selling for 95.96 percent of par, what would be the weight used for equity in the computation of Bill's WACC?