13. What is the present value of a perpetuity that pays $2800 each year? Assume the interest rate is 5% a. $25,200 b. $28,000 c. $39,600 d. $56,000 e. $64,800 14. A company is paying annual dividends. The dividend is $2.00 in one year and grows at 8% every year. However, the company will have to cancel the dividend in the second year to cover the costs of a project. Given 12% discount rate, what is the value of this dividend stream? a. $50.00 b. $48.28 c. $48.00 d. $47.84 e. $46.35