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2. You invest in a company with a quarterly $1.25 dividend. If you require a return of 8% compounded semi-annually, what is the value of

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2. You invest in a company with a quarterly $1.25 dividend. If you require a return of 8% compounded semi-annually, what is the value of the shares? (hint: this is a general perpetuity case; use it to get the PV i.e. the value of the shares) 3. How much will you have 20 years from today if you deposit $2,000 at the end of this year, then increase your annual contributions by 2% thereafter? Interest is 5% compounded annually

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