1- The Riyadh Co. just paid an annual dividend of $2.00 a share. The dividend will increase by 5 percent for the next three years and then increase by 2 percent annually thereafter. What is the present value of this stock at a discount rate of 10 percent? (* Draw time line first and solve step by step with your calculator)

2- The bonds issued by AlKhobar Jewelers bear a 7 percent coupon (rate), payable semiannually. The bonds mature in 8 years and 6 months, and have a $1,000 face value. If the required rate of return is 9 percent, What is the bond price? (Solve it with your calculator)