1. Etling Inc.'s dividend is expected to grow at 7% for the next two years and then at 4% forever. If the current dividend is $3 and the required return is 16%, what is the price of the stock?
a. $29.45
b. $25.54
c. $26.15
d. $27.44
e. $25.10
2. Bond ratings issued by DBRS specifically account for inflation risk.
True
False