1. In 11 years you will begin receiving $158 per year in perpetuity from a family trust fund (first payment is exactly 11 years from today). You have decided to discount these cash flows at a constant interest rate of 6.5%. What is the present value today of these future cash flows? (Hint: draw a time line to illustrate exactly the cash flows for this problem.) Answer to 2 decimal places.

2. What is the PV of a 12-year annuity due (payments at beginning of period, aka annuity in advance) of $548 if the required return is 6.3% Answer to 2 decimal places.

3. Williams Inc. is expected to pay a $8 dividend next year and that dividend is expected to grow at 3.2% every year thereafter. If the discount rate is 8.3%, what would be the present value of the expected dividend stream (aka the expected price of the firm's stock)? Answer to 2 decimal places.