a. Assume that Social Security promises you $42,000 per year starting when you retire 45 years from today (the first $42,000 will get paid 45 years from now). If your discount rate is 4%, compounded annually, and you plan to live for 15 years after retiring (so that you will receive a total of 16 payments including the first one), what is the value today of Social Security's promise? The value today of Social Security's promise is $____?

b. Assume Evco, Inc. has a current stock price of $52.64 and will pay a $2.05 dividend in one year; its equity cost of capital is 18%. What price must you expect Evco stock to sell for immediately after the firm pays the dividend in one year to justify its current price? We can expect Evco stock to sell for $____. (Round to nearest cent)

c. You just purchased a share of SPCC for $100. You expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what toal return will you have earned over the year? What was your dividend yield? Your capital gain rate? The total return you will have earned over the year is ____%. (Round to two decimal places)

d. NoGrowth Corporation currently pays a dividend of $0.55 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 14.8%? The stock price is $____. (Round to nearest cent)