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i have posted these two questions earlier today and no one has helped me. Please provide me the answers with solutions ASAP please 8 pts
i have posted these two questions earlier today and no one has helped me. Please provide me the answers with solutions ASAP please
8 pts Question 16 Congratulations! Today your first child was born - a daughter. The second thought in your head after her birth was that you must now start saving for college expenses. You would like to be able to afford to send her to college by her 18th birthday. College is expected to cost her/you $21 thousand, $22 thousand, $26 thousand, and $29 thousand for each of her four years of school, respectively (i.e., in that order). You want these amounts to be available to her on her 18-21st birthdays, respectively (i.e., $21 thousand withdrawn on her 18th birthday, $22 thousand withdrawn on her 19th birthday, and so on...). In addition, you want to give her a $21 thousand graduation gift on her 22nd birthday so that she can get a good start on her career or in graduate school (or potentially partially fund a wedding, etc.). You currently have $2 thousand to meet these obligations. You want to save an equal amount at the end of each of the next 22 years to meet the remaining obligations. How much must you save at the end of each of the next 22 years so that you can meet these obligations? Assume your investments will earn 7.5% annually, and ignore the effect of taxes. Provide your answer to the nearest dollar (in other words, if your answer is one million dollars, then input 1,000,000 or 1000000). Question 18 9 pts You are deciding whether to invest in a specific firm's stock. Today's dividend was $5.06 per share. The dividend is expected to grow at a rate of 1.5 percent per year for the next 7 years. Your required return on an investment of this sort is 12.0 percent per year. The current market price of the stock is $63.91 per share. What 7-year target price is consistent with this market price and dividend growth assumptions? Provide your answer in dollars to the nearest penny. In other words, if your answer is $100.00 per share, then enter 100.00 as yourStep by Step Solution
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