1. A business paid a dividend last year of $2.3, and its stock is currently trading at $51 a share. If investors require a rate of return of 12.1, what is the implied growth rate for this company? Show your answer as a percentage to two decimal places (if you think the answer is .0793, record it as 7.93).
2. A 5.30 percent coupon bond with 19 years left to maturity can be called in three years. The call premium is one year of coupon payments. It is offered for sale at $1,055.30. What is the yield to call of the bond? (Assume interest payments are semiannual.