Mr. Blochirt is creating a college investment fund for his daughter. He will put in $24,000 per year for the next 13 years and expects to earn a 8% annual rate of return. How much money will his daughter have when she starts college? Use Appendix C to calculate the answer.

• $503,854

• $504,867

• 516,607

• $515,880

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An issue of preferred stock is paying an annual dividend of $2.00. The growth rate for the firm's common stock is 6%. What is the preferred stock price if the required rate of return is 9%?

• $27.22

• $24.72

• $22.22

• $19.72