1. A company has stock which costs $42.00 per share and pays a dividend of $2.00 per share this year. The company's cost of equity is 8%. What is the expected annual growth rate of the company's dividends?
A. 3.24%
B. 12.96%
C. 6.48%
D. 9.72%
2. What is the coupon rate of a two-year, $5,000 bond with semiannual coupons and a price of $4,875.92, if it has a yield to maturity of 6.3%
A. 3.968%
B. 5.952%
C. 6.944%
D. 4.96%