1. A stock sells today for $38, and just paid a dividend of $2. If the growth rate is 4%, what is the required return on the stock? Answer to 4 decimal places, for example 0.1234.
2. Suppose you take a 23-year mortgage of $110000. The annual interest rate is 4%, and the annual APR is 4.13%. Loan payments are made annually. Calculate the amortized fees and expenses for this loan (in dollars, provide your answer with $1 precision).