1) A university scholarship fund offers $6,000 annual scholarships and intends to do so in perpetuity. At an annual interest rate of 10.5% per year (effective) on its $2,400,000 fund which it has invested in preferred shares, bonds, and blue chip common stock. Determine the number of scholarships which can be presented annually.

2) Consolidated, Inc. has common stock that paid its annual dividend two days ago. Consolidated anticipates that future annual dividends will grow at a rate of 4% per year into the foreseeable future. An investor who has an expected return of 16% per year (effective) intends to purchase Consolidated stock today at $25 per share. Compute the value of the dividend that was just paid.