Show your work with your answer.

$1.$You are borrowing money to buy a car. If you can

make a payment of $$250$ per month and pay an

interest rate of $10\%,$ how much will you be able to

borrow the car today if you finance the amount over

$6$ years?

$2.$Poes' stock currently sells for $$26$ a share. It just paid

a dividend of $$2\mathrm{.}00$ a share. The dividend is

expected to grow at a constant rate of $7\%$ a year.

What is the required return?