1. A municipal and a corporate bond of equal risk, liquidity and maturity yield 6% and 10% respectively. For which values of marginal tax rates would you prefer to buy the municipal bond?
2. Financial analysts forecast GDY Inc.’s growth for the future to be 5%. GDY's recent annual dividend was $6.00. What is the per share value of GDY stock when the required return is 15%?
Stock Value: $______