1. You apply for a home equity loan. The lender gets an appraisal on your home, showing a value of $183,500. You have a first mortgage with a current balance of $87,435. Based on a 75% LTV ratio, what is the maximum line of credit you can get?
2. Assume you buy 100 shares of stock at a price of $63.75 per share and incur brokerage fees of $200. You own the stock for 5 years and receive dividends of 50 cents per share at the end of each quarter. Immediately after receiving the 20th quarterly dividend, you sell the stock at a price of $48.63 per share and incur brokerage fees of $200. Calculate your rate of return. (IRR)