1. If you want to increase your purchasing power by 5%, what is the required nominal rate when the inflation rate is 3%?
A 3.0%
B 5.0%
C 8.0%
D 8.2%
E 15.0%
2. High Country Builders currently pays an annual dividend of $1.35 and plans on increasing that amount by 2.5 percent each year. Valley High Builders currently pays an annual dividend of $1.20and plans on increasing its dividend by 3 percent annually. Given this information, you know for certain that the stock of High Country Builders' has a lower _______ than the stock of Valley High Builders
A market price
B dividend yield
C capital gains yield
D total return
E The answer cannot be determined based on the information provided