1. Declining Products Corporation produces goods that are very mature in their product life cycles. Declining Products is expected to pay a dividend in year 1 of $1.03, a dividend of $0.93 in year 2, and a dividend of $0.88 in year 3. After year 3, dividends are expected to decline at a rate of 2% per year. An appropriate required rate of return for the stock is 8%.

What should the stock be worth?

2.

You purchased the following futures contract today at the settlement price listed in The Wall Street Journal.

Corn (CBT) 5,000 bu.; cents per bu.						Lifetime
Revenue	Open	High	Low	Settle	Change	High	Low	Open Interest
Nov.	204.5	206.75	204	204	+3.5	268.5	182	2,095

If there is a 37.50% margin requirement, how much do you have to deposit?Round your answer to 2 decimal places.