1. A company has just paid a quarterly dividend of $1.50 per share, which is expected to increase 1% every quarter into the future. The future dividends are an example of which type of cash flow stream?
perpetuity
ordinary annuity
growing annuity
growing perpetuity
annuity due
2. A municipal bond yields 5.1 percent. What is the taxable-equivalent yield for an individual who has a 38 percent marginal tax rate? 7.57 percent 7.85 percent 7.04 percent 8.23 percent