1. Mitchell, Inc., is expected to maintain a constant 5.9 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.4 percent, what is the required return on the company’s stock?
2. Intel reports retained earnings at the end of fiscal 2013 of $35,477 million and retained earnings at the end of fiscal 2012 of $32,138 million. The company reported dividends of $4,479 million and other transactions with shareholders that reduced retained earnings during the year by $1,802 million. How much net income did the firm report in fiscal 2013? A) $3,339 million net income B) $3,339 million net loss C) $9,620 million net income D) $9,620 million net loss E) None of the above