1. JEN Corp. is expected to pay a dividend of $5.50 per year indefinitely. If the appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex-dividend 30 days before dividend payment date, what will be the expected maximum price in light of the dividend payment logistics?

A) $49.57

B) $55.03

C) $44.07

D) $50.00

2. Portfolio Beta You own $1,200 of City Steel stock that has a beta of 1.55. You also own $5,500 of Rent-N-Co (beta = 1.85) and $4,500 of Lincoln Corporation (beta = .95). What is the beta of your portfolio (closest to)?

A) 1.00

B) 4.35

C) 2.72

D) 1.46