1. Dr. Superhook, a private towing contractor, has an opportunity for a towing contract with the city over the next 5 years. The contract calls for the city to pay Dr. Superhook $4,000,000 at the start of the contract and nothing for the remainder of the contract. Dr. Superhook estimates that its expenses will be $1,200,000 at the end of each of the 5 years If Dr. Superhook uses IRR to evaluate its opportunities, under what values of the discount rate would the company accept the contract? Briefly explain why

2.ABC Inc.s stock is currently selling for $50. The expected dividend one year from now is $1.50 and the required investor return is 10% per year (effective). Assuming constant growth, compute the firms annual dividend growth rate.