They should plant now rather than wait
B. Employers are willing to pay more for those skills.
Answer:
Dividend growth rate anticipated = 14.66%
Explanation:
Using dividend growth model we have
P
= 
Where P
= Current market price = $120
D
= Dividend to be paid at year end or next year = $1.37
K
= Expected return on equity = 15.8%
g = Expected growth rate
Now putting values we have
$120 = 
0.158 - g = 
0.158 - 0.0114 = g
0.1466 = g = 14.66%
Solution :
At every stage the formula used will be :

After the junior year, Aunt Mabel's bank balance will be :

= $ 7,322.65
Aunt Mabel's bank balance after sophomore year will be :
7,322.65 + 1000 = $ 8,322.65

= $ 8060.677
After the freshman year, bank balance of Aunt Mable's will be :
8060.677 + 6000 = $ 14,060.677

= $ 14.0606
If Aunt Mabel can predict the interest rate with accuracy, she will have to deposit :
$ 14.0606 + $ 9000 = $ 9,014.06

= $ 8,565.241