1. What is monetary policy ( be specific) and how is it different from the "lender of last resort" function performed by the FR (Federal Reserve)?
2. A stock is expected to pay a dividend of $2.25 the end of the year (that is, D1 = $2.25), and it should continue to grow at a constant rate of 8% a year. If its required return is 13%, what is the stock's expected price 1 years from today? Round your answer to two decimal places.