1. Microsoft Co. has common stock with a beta of 1.46. The expected return on the market is 13.9% and the risk-free rate is 3.8%. What is the expected return on this stock?
A. 15.28%
B. 16.58%
c. 17.38%
D. 18.95%
2. What constant growth rate in dividends is expected for a stock valued at $32.00 if next 43) year's dividend is forecast at $2.00 and the appropriate discount rate is 13 percent? SHOW WORK PLEASE.