1. An investment offers a total return of 13.05 over the coming year. Janice Yellen...
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Finance
1. An investment offers a total return of 13.05 over the coming year. Janice Yellen thinks the total real return on this investment will be only 4.0%. What should Janice believe the inflation rate will be over the next year? (use the accurate equation)
Group of answer choices
8.64%
-7.95%
6.05%
9.94%
11.24%
2.
Christgau Corporation is expected to pay the following dividends over the next four years: $16, $13, $8, and $3. Afterward, the company pledges to maintain a constant 6% growth rate in dividends forever. If the required return on the stock is 13 percent, what should the current share price be?
Group of answer choices
$59.59
$56.60
$58.24
$66.37
$61.36
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