1. Expected Return Circuit City Stores (CC) recently paid a $.24 dividend. The dividend is expected to grow at a 23.80 percent rate. At the current stock price of $8.76, what is the return shareholders are expecting?

a) 23.80%

b) 2.74%

c) 27.19%

d) 23.83%

2. Future Value Given a 8.00 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,900, $2,100, $2,400, and $2,400.

a) $10,894.48

b) $11,471.42

c) $9,292.50

d) $10,644.92