1. Required rate of return and cost of capital are the same thing ( True or false ) Explain
2. A stock will pay $3/share in year 1, $6/share in year 2, $9/share in year 3. Afterwards, they will change their dividend policy to constant growth at 2%/year, forever. R=13%. How much dividend will be paid in year 25?
13.91
132.42
18.35
18.36
None of the above.