1. The common stock of Panther Group sells for $32.60 per share, has a rate of return of 10.95 percent, and a dividend growth rate of 3.62 percent annually. What is the amount of the next annual dividend?

2. The Panther Pub is currently considering a project that will produce cash inflows of $11,000 a year for three years followed by $8,500 in Year 4. The cost of the project is $38,000. What is the profitability index if the discount rate is 9 percent?