1. Currently intel has a 1% dividend yield and has an expected growth in stick price (capital gain yield) of 13%. what is the return required by an average investor of intel stock?
a. 14%
b. 13%
c. 12%
d. the market return
e. not enough info
2. Assume that the stock of the Perry corporation has just paid an annual dividend of $5 and is expected to grow indefinitely at an annual growth rate of 10 percent. if shareholders required 13% return on their investment in Perry, how much should this stock be selling for?
a. $ 183.33
b. $217.70
c. $256.81
d. $166.67
e. $ 360.25