1. Martha's recently paid an annual dividend of $3.60 on its common stock. The dividend increases by 2.5 percent per year. What is the market rate of return if the stock is selling for $32.65 a share?
a. 13.45%
b. 16.05%
c. 15.55%
d. 13.80%
e. 12.57%
2. Comparative analysis of three financial stress models Altman's Z-score, Ohlson's O-score and Merton’s Distance to Default.