Immediately start saving for retirement

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1. Sherry began working full time and would like to immediately start saving for her retirement. Sherry would like to have $2 million in retirement savings when she retires in 45 years. If sherry were to save $6000 each year, what return does sherry need in order to reach her $2 million goal?

2. A firm is expected to have $100 million FCF in a year. The FCF is expected to grow at a 15% for 2 years and thereafter 5% forever. The firm's WACC is 9% and 100 million common shares are outstanding. The firm's debt and preferred stock are $300 million and $100 million respectively. What is the firm's stock price today?

Reference no: EM132022905

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