1. Rover Corporation is expected to pay no dividends for first five years. For next 7 years the firms expected dividends are $10, $16, $22, $29, $36, $40 and $50 respectively. Afterwards the forms dividends are expected to grow at 6% per year forever. If your expected return is 18%, determine the value of Rovers stock today.

2. Laurel and Hardy are twins and both work at the Berea BMV. They decide to save for retirement, which is 35 years away. They will both receive an 8% annual return on their investments over the next 35 years. Laurel invest $2,000 per year at the end of each year only for the first 10 years of the 35 year period. Hardy doesnt start saving for 10 years, and then invest $2,000 per year for the remaining 25 years. How much will each of them have when they retire? What is the lesson here?