Question $22(1$ point$)$

What would be the price of a stock that pays an annual fixed dividend of $$1\mathrm{.}2$ for ten

years, and then the dividend payment increases by $1\%$ every year, and the required

rate of return is $5\%$ annually?

Question $23(1$ point$)$

You have just retired with savings of $$1$ million. If you expect to live for $58$ years and

to earn $12\%$ a year on your savings, how much can you afford to spend each year $($in

$ dollars$)?$ $ $.($Assume that you spend the money at the start of each year.$)$

Question $24(1$ point$)$

ABC common stock is expected to have extraordinary growth in earnings and

dividends of $22\%$ per year for $2$ years, after which the growth rate will settle into a

constant $4\%.$ If the discount rate is $15\%$ and the most recent dividend was $$5,$ what

should be the approximate current share price $($in $ dollars$)?$ $

Question $25(1$ point$)$

The bonds issued by United Corp. bear a coupon of $5$ percent, payable semiannually.

The bond matures in $13$ years and has a $$1,000$ face value. Currently, the bond sells

at $$1049.$ The yield to maturity $($YTM$)$ is

$\%.$