Your second cousin has just turned 30 years old, has just received her master's degree in neurofinance and has accepted her first job. Now she must decide how much money to put into her retirement plan. The plan works as follows: Every dollar in the plan is expected to earn 8% per annum. She cannot make withdrawals until she retires on her sixty-fifth birthday. After that point, she can make withdrawals as she sees fit. She plans on living to 100 years and working until she turns 65. She estimates that to live comfortably in retirement, she will need $120,000 every year starting at the end of the first year of retirement and ending on her 100th birthday. Assume that she will contribute the same amount to the plan at the end of every year that she works. The amount of money she would need to contribute each year to fund her retirement is closest to: a) $7,475. b) $8,116. c) $8,207. d) $8,817. Your uncle has borrowed $300,000 for a 5-year period at a stated interest rate of 8% p.a. with interest compounded quarterly. He intends to make equal, quarterly payments on the loan over its duration with the first payment scheduled at the end of the first quarter. Assuming end-of- the-quarter cash flows, the principal repaid in the second quarter will be closest to: a) $5,753. b) $12,347. c) $12,594. d) $18,347. Following a significant market downturn, ASL Ltd has just announced that it plans to lower its dividend from $2.00 per share to $1.50 per share and use these funds to expand its operations. Before this announcement, ASL's dividends were expected to grow at 3% per annum forever and ASL's shares were trading at $20.00 per share. Following the new expansion, analysts expect ASL's dividends to grow at 5% per annum forever. Assuming that the required return on ASL's shares is unchanged by the expansion, ASL's share price after the announcement will be closest to: a) $11.54. b) $18.75. c) $20.00. d) The price cannot be calculated without additional information