The Excello Company currently has a policy of paying out 30% of its earnings in dividends. Currently the market is expecting a return on equity of 10%. The firm had just paid a dividend of $1 and the current stock price is $10. The required rate of return on Excello stock is:

10%

17.7%

17%

13.3%

Xiang invests $25,000 per year, starting today, for 20 years at an interest rate of 7%. What is the value of the investment at the end of the 20 years?

$1,024,887.31

$283,389.88

$1,096,629.42

$264,850.36

Please show all calculations! No excel answers.