1. Custom Machinery, Inc. expects a dividend next year of $4.80 per share, their growth rate of dividends is 9 percent, and their required return of 19 percent. The value of a share of Custom Machinery's common stock is
a. $22.04
b. $48.00
c. $28.00
d. $18.67
2. Absolute purchasing power parity is most apt to exist for which one of the following items?
A. A cell phone
B. An ounce of silver
C. A pound of beef
D. A computer
E. An automobile