both questions

Elena Steelworks, Inc. ("ESI") is planning to sell $10 million of preferred stock (with no maturity date) to Eastern Asset Management (EAM) a private equity investor. At first, EAM wanted a fixed dividend rate of 725%, which means it would receive each year $2.9 million in annual dividends from ESI forever. Today, EAM called ESI and said it wanted to make some changes to the deal; EAM said it wanted to receive initially $2.9 million in dividends in Year 1, but after the first year EAM wanted the cash dividends to grow by 2.5% per year. How can ESI respond to this change request? It should say "no" because equity Instruments cannot have a variable dividend. It should require the dividend rate be increased each year sufficient to increase its dividend payments by 2.5% per year, It should require the total price of the preferred stock be increased to $61,052,631.58. It should require the total price of the preferred stock be increased to $55,238,095.24. Question 9 9.12 pts Madison wants to retire in 35 years (i.e., at the end of the next 35 years). Beginning in the 36th year, she wants to be able to have retirement income beginning in Year 36 and for all years thereafter equal to $350,000 per year. Her retirement income would come from the annual interest income from a portfolio of AAA-rated U.S. Treasury bonds, and she estimates U.S. Treasury bonds will earn an average of 5.50% per year at that time. How much will Madison need to save and invest each month if she can earn an average annual return of 13.80% in order to provide enough funds at the end of Year 35 to finance her retirement? $38744 $865.63 $ 605.77 $ 712.54 $285.53