1. Enrite Gas recently paid a $4.75 annual dividend on its common stock, which is expected to increase at an average rate of 3.5% per year. If the stock is currently trading for $39.33 per share, what is its market rate of return?
2. Town Bagel common stock sells for $65 a share and pays an annual dividend that increases by 4% annually. The market rate of return on this stock is 14%. What is the amount of the last dividend paid?