1. An issue of common stock that paid a dividend yesterday of $1.30, and is currently priced at $35 per share. Calculate this stock's current dividend yield for the coming year if investors anticipate the company's dividends to grow for the foreseeable future at a rate of 4%.
2. What is the required rate of return for an investment that pays $325 monthly, has a present value of $14000, a future value of $0, and a time horizon of 4 years? Please show work.