1) Since your first birthday, your grandparents have been depositing

$140 into a savings account every month. The account pays 6% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to:

A.$65,075

B.$32,537

C.$75,921

D.$54,229

2) JRN Enterprises just announced that it plans to cut its dividend from

$2.00 to $1.50 per share and use the extra funds to expand its operations. Prior to this announcement, JRN's dividends were expected to grow at 5% per year and JRN's stock was trading at $25.00 per share. With the new expansion, JRN's dividends are expected to grow at 10% per year indefinitely. Assuming that JRN's risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to:

A.$25.00

B.$18.75

C.$66.67

D.$50.00