You plan to retire 40 years from now. You expect that you will live 21 years after retiring. You want to have enough money upon reaching retirement age to withdraw $140,000 from the account at the beginning of each year you expect to live, and yet still have $2,900,000 left in the account at the time of your expected death (61 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 40 years. You expect that you will be able to earn 10% per year on your deposits. However, you only expect to earn 7% per year on your investment after you retire since your will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal? $3,334.00 $4,772.60$3,667.40$5,249.86$5,928.88 You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $4.80 and that dividends will grow at a rate of 7.0% per year thereafter. If you would want an annual return of 20.0% to invest in this stock, what is the most you should pay for the stock now? $40.34$39.51$24.00$25.68$36.92 Grow On, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $5.10. You believe that dividends will grow at a rate of 13% per year for two years, and then at a rate of 7% per year thereafter. You expect the stock will sell for $38.71 in two years. You expect an annual rate of return of 16% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now? $38.58 $59.41 $67.35 $50.17 $72.90