1. Moraine, Inc., has an issue of preferred stock outstanding that pays a $5.15 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return?
2. You want to save to buy a laptop that costs $1,962. Therefore, you deposit $703 into a bank that pays 9.75% interest compounded annually. How many year will it take for you to buy the laptop in your shopping list?
Please round your answer to the second decimal, e.g. 1.50 (year).