Question 1 (10 points) In the year-end of 2018, Mike Foods Inc. just spent $19.5 million to pay out the dividends and it disclosed the retained earnings of $279.5 million. In the year-end of 2017 the company had retained earnings of $221.8 million. Based on the given information, what was the net income of 2018 for Mike Foods Inc.? Question 2 (10 points) Suppose Kim has $800 due in the future and the nominal rate is 6%, please find out its present value under following two conditions: (1) Semiannual compounding, discounted back 8 years (2) Quarterly compounding, discounted back 8 years. Why do the differences in the PVs occur? Question 3 (10 points) Jessica has just won a game organized by her community. As a reward, she needs to choose among three options: (A) She can choose to receive a lump-sum today of $55. (B) to receive 10 end-of-year payments of $9, or (C) to receive 30 end-of-year payments of $5. If we assume that she can earn 6% annually, which option should she choose