Q1:

Crosby Inc. has an 11% required rate of return. It does not expect to initiate dividends for 20 years, at which time it will pay $4.00 per share in dividends. At that time, Crosby expects its dividends to grow at 6% forever. What is an estimate of Crosby's price in 20 years (P20) if its dividend at the end of year 20 is $4.00?

Q2:

Suppose you wish to set aside $2,000 at the end of each of the next 10 years in an account paying 12 percent compounded annually. You accumulate at the end of 10 years an amount closest to