1. From tables in the Wall Street Journal or other papers that carry quotations on Treasury notes, and bills, determine the general shape of the term structure of interest rates. Trace the difference between short-term and long-term interest rates over the past year.?
2. ABC Inc.'s stock is currently selling for $23.39 per share. The company just paid its first annual dividend of $4.11 a share. The firm plans to increase the dividend by 5.6 percent per year indefinitely. What is the required rate of return on equity?