B. (20 Marks) 1. What do you understand by Perpetuities and Annuities and why are they important in Managerial Finance? How are they calculated? (10 Marks) 2. Calculate the following and show your workings (10 Marks) a. ABC Corp. is expected to pay a dividend of $3 per share next year. Investors anticipate that the annual dividend will rise by 6% per year forever. The required rate of return is 11%. What is the price of the stock today? b. Julie has just been offered a job at $50,000 a year. She anticipates her salary will increase by 5% a year until her retirement in 40 years. Given the interest rate of 8% what is the present value of her lifetime salary