1. One year ago, you bought a stock for $15.40 a share. You received a dividend of $0.90 per share last month and sold the stock today for $17.80 a share. What is the dividend yield on this investment?
5.84 percent
9.52 percent
7.82 percent
3.61 percent
2. Merced Co. has a beat of 1.4. If the risk free rate is 1% and the market return is 8%, what is Merced Co’s cost of equity assume CAPM?
14.5%
10.8%
16.6%
12.2%