(a)Cuomo Corporation has had dividends grow from $2 to $5 over the last five years.This growth is expected to continue well into the foreseeable future.If the current market price is $38 per share, what annual rate of return do investors expect to receive from buying Cuomo stock?

(b)Joe Don Brigham has a choice of buying bonds that pay annual coupons at a rate of 9.4% per year with a life of 10 years or bonds that pay a coupon rate of 9.1% per year with semiannual payments and a life of 8 years.The market rate for both bonds is 14%.Which bond will sell at the highest price?If he has $1,000,000 to invest in these bonds, approximately how many annual bonds could he purchase and how many semiannual bonds could Joe Don purchase?

(c)You have just had your thirtieth birthday.You have two children.One will go to college 10 years from now and require four beginning-of-year payments for college expenses of $10,000, $11,000, $12,000, and $13,000.The second child will go to college 15 years from now and require four beginning-of-year payments of $15,000, $16,000, $17,000, and $18,000.In addition, you plan to retire in 30 years.You want to be able to withdraw $50,000 per year (at the end of each year) from an account throughout your retirement.You expect to live 20 years beyond retirement.The first withdrawal will occur on your sixty-first birthday.What equal, annual, end-of- year amount must you save for each of the next 30 years to meet these goals, if all savings earn a 15 percent annual rate of return?