1. Lisa Simpson is an security analyst at Left-handed Brothers Securities and has developed the following estimates for Doh! Doughnuts common stock which is currently selling for $40 per share. The risk-free rate is 2%, the market risk premium is 8%, and Doh!'s stock has a beta of 1.2 with a current dividend of $1.80 that has an expected constant growth rate of 7.5%. What is Lisa's estimate of the expected return for Doh! Doughnut's stock?

A. 9.2%

B. 12.3%

C. 10%

D. 11.2%

E.7.5%

2. An unmarried taxpayer with AGI of $120,000 in 2017 has a tax liability of $21,000. The taxpayer's 2018 AGI and tax liability are $175,000 and $31,000, respectively. To avoid any penalty for underpayment of estimated tax in 2018, the minimum amount the taxpayer must prepay during 2018 is:

A. $21,000

B. $23,100 (marked incorrect on test results already)

C. $27,900

D. $31,000

E. $34,100