1. A stock is expected to pay a dividend of $3.00 at the end of the year (i.e., D1 = $3.00), and it should continue to grow at a constant rate of 6% a year. If its required return is 14%, what is the stock's expected price 4 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
2. Kolama Company s’ bonds currently sell for $945. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?