Question 1. A

a. Catherine invested $1,000 in the stock of the Cresta. The company pays a current dividend of $2, which is expected to grow by 20 percent per year for the next two years. What will the dividend of Cresta be after two years?

b. Mpho, who recently won $10,000 in the Cash Bazaar lottery, wants to buy a Honda Fit car in five years. Mpho estimates that the car will cost $16,105 at that time. What interest rate must he earn to be able to afford the car?