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Question 10 1.5 pts Assume that you are 25 years old today, and that you are planning on retirement at age 65. You expect your salary to be $55,000 one year from now and you also expect your salary to increase at a rate of 3% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 26th birthday and will be 12% of this year's salary. Likewise, you expect to deposit 12% of your salary each year until you reach age 65. Assume that the rate of interest is 5%. The future value (FV) (at age 65) of your retirement savings is closest to $1,091,733.20 $1,225,821.20 $1,246,723.80 $988,452.90 Question 11 1.5 pts General Electric Co. (GE) is expected to pay a $5.00 dividend at the end of this year. If you expect GE's dividend to grow by 3% per year forever and GE's equity cost of capital to be 11%, then the value of a share of GE stock is closest to $35.74 $27.19 $62.50 $42.86 Question 14 1.5 pts Palantir Technologies Inc. pays out all its earnings and has a share price of $290. In order to expand, Palantir decides to cut its dividend from $20.00 to $16.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 16%. If the reinvestment does not affect Palantir's equity cost of capital and earnings before the dividend cut were expected to be constant, what is the expected share price as a consequence of this decision? $432.84 $462.86 $532.38 $366.70

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