1. PLC pays an annual dividend of $6.00. The company is expected to continue paying this dividend with no future growth in dividends. Investors require 11% rate of return on this investment. What is the current stock value of PLC?
   1. $39.99
   2. $27.15
   3. $12.16
   4. $54.54
2. Jim makes a $1,000 deposit in an account paying 4% interest per year. He would like to withdraw two equal amounts: in one year and in two years. The amount Jim should withdraw in one year such that he will have the same amount at the end of the second year is close to:
   1. 423
   2. 389
   3. 530
   4. 637