1. The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $3.40 per share. What is the current value of one share of this stock if the required rate of return is 8.90 percent? $87.51 $123.08 $104.95 $126.48 $108.35

2. Which one of the following statements is true? A. Mutual funds provide little, if any, benefit to investors. B. Studies seem to indicate stock markets are semistrong but not strong form efficient. C. Market studies indicate that stock markets are only weak form efficient. D. Highly positive serial correlations are indicators of market efficiency. E. Abnormal returns limited to the announcement date are indicators of market inefficiency.