1. King Waterbeds has an annual cash dividend policy that raises the dividend each year by 4%. Last year’s dividend was $0.40 per share. What is the stock’s price if

a. an investor wants a 5% return?

b. an investor wants an 8% return?

c. an investor wants a 10% return?

d. an investor wants a 13% return?

e. an investor wants a 20% return?

2. Sally McKrachen is a single young professional with a gross income of $51,000. Sally has no adjustments to gross income, but she does have itemized deductions totaling $4,275. If personal exemptions for the year are $3,700 each and the standard deduction is $5,800, what is Sally's taxable income?

a. ?$37,225

b. ?$41,500

c. ?$43,025

d. ?$47,300