1. You want a seat on the board of directors of Zeph, Inc. The company has 220,000 shares of stock outstanding and the stock sells for $69 per share. There are currently 5 seats up for election. If the company uses cumulative voting, how much will it cost you to guarantee that you will be elected to the board?

$9,240,084

$2,772,076

$2,530,069

$6,160,084

$3,696,000

2. A stock is expected to maintain a constant dividend growth rate of 4.3 percent indefinitely. If the stock has a dividend yield of 5.6 percent, what is the required return on the stock? 8.9%

9.2%

9.4%

8.2%

9.9%