1. Gareth owns 1 share of stock A and 1 share of stock B. In 1 year from today, the total value of his holdings is expected to be 161.44 dollars. Stock A is currently priced at 112.55 dollars, has an expected return of 11.77 percent, and is expected to pay a dividend of 3.64 dollars in 1 year from today. Stock B is currently priced at 42.3 dollars and is expected to pay a dividend of 5.98 dollars in 1 year from today. What is the expected return for stock B? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
2. Maritza has one share of stock and one bond. The total value of the two securities is 1,002 dollars. The bond has a YTM of 12.42 percent, a coupon rate of 11.02 percent, and a face value of 1,000 dollars; pays semi-annual coupons with the next one expected in 6 months; and matures in 13 years. The stock pays annual dividends and the next dividend is expected to be 6.97 dollars and paid in one year. The expected return for the stock is 15.66 percent. What is the price of the stock expected to be in 1 year?