1. Which one of the following regarding the basis for mutual funds is false ? The basis of mutual funds can be determined by using the:
Double category method
Average basis
Specific share identification method
First in first out method
2. Blanton Consulting Inc. just paid a? $2.00 per share dividend. The firm also announced that it anticipates a longminus run growth in dividends of? 3% per year. Inflation is also expected to be? 3% per? year, and the firms required rate of return on common stock is? 11%. What is the current price per share of the? firm's stock?
A. ?$25.00
B. ?$14.29
C. ?$14.71
D. ?$25.75