QUESTION 1 An investor has one share of stock and one bond issued by XYZ Inc. The total value of the two securities is 51.000. The bond has a YTM of 9.6 percent, an annual coupon rate of 8.4 percent, and a face Value of $1,000. The bond matures in 22 years and pays semi-annual coupons with the next one expected in 6 months. The stock is expected to pay an annual dividend every year forever, the next dividend is expected to be 58.30 in 1 year all subsequent dividends are expected to grow at the same annual growth rate, and the expected return for the stock is 11.7 percent. What is the annual growth rate of the stock's dividend expected to be? A rate equal to or greater than 3.00% but less than 4.00% A rate equal to or greater than 4.00% but less than 5.0096 A rate equal to or greater than 5.00% but less than 6.00% A rate equal to or greater than 6.0096 but less than 7.0096 A rate less than 3.00% or a rate equal to or greater than 009 QUESTION 2 XYZ wants to have $266.000 in his investment account in 9 years from today. He expects to earn a return of 11.5 percent per year in that account. XYZ plans to make regular, equal savings contributions of $14,000 per year to his account for 9 years, with the first of these regular, equal savings contributions made in 1 year from today. In addition, XYZ expects to make a special contribution to his account of Xin 5 years from today. What is the amount of the special contribution that XYZ will make to his account in 5 years from today? $25.996 (plus or minus 510) $41.066 (plus or minus $10) $63.471 (plus or minus 510) $23.829 (plus or minus 510) None of the above is within $10 of the correct