1. Matilda Industries pays a dividend of $2.30 per share and is expected to pay this amount indefinitely. If? Matilda's equity cost of capital is 12% which of the following would be expected to be closest to? Matilda's stock? price?
2. A stock is bought for $24.00 and sold for $28.00 one year? later, immediately after it has paid a dividend of? $1.50. What is the capital gain rate for this? transaction?