Youve just joined LSP whichve offered you two different salary arrangements. The first one is that you can have $95,000 per year for the next two years, however, the second one is that you can have $70,000 per year for the next two years, along with a $45,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent, which do you prefer? *

a. The first option

b. The second option

c. Indifferent

d. Neither

e. None of the above

. LSP Co.s stock price is $58.88, and it recently paid a $2.00 dividend. This dividend is expected to grow by 35% for the next 5 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 5? *

a) 9.5%

b) 6.25%

c) 15.75%

d) 33.33%

e) None of the above