1. A stock dealer has a bid of $17.00 and an ask of $17.25. An investor buys and then sells the stock at these quotes. The investor's transaction cost per dollar invested is____ .
A) 1.47%
B) 1.45%
C) 1.42%
D) 1.40%
2. Formosan Freedom Co. is currently priced at $42.50 per share and it is expected to sell for 6% more next year. The stock will pay an annual dividend per share of $ 1.10 next year. The expected return on this stock is ___.
A) 8.59%
B) 7.65%
C) 6.00%
D) 2.59%