1. Shiner Corporation just paid a dividend of D0 = $2.20 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?
2. Camy Inc's preferred stock pays a dividend of $2.25 per quarter. If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return.