Question B1 (7 marks)

Suppose Gordon is now aged 50 and plans to start saving for 15 years and will accumulate $1,500,000 at the age of 65 as his retirement fund. Suppose the required return is 9 percent compounded monthly, what will be his monthly payments with the first payment occurring one month from now?

Question B2 (8 marks)

G-Force stock currently sells for $48.29 per share. The market requires a 13 percent return on thefirm's stock. If the company maintains a constant 5.5 percent growth rate in dividends, what wasthe most recent annual dividend per share paid on the stock?