1. SRS, Inc. just paid an annual dividend of $2.76 last month. The required return is 12 percent and the dividend growth rate is expected to be constant at 2.7 percent. What is the expected value of this stock ten years from now?
2. A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $884.60 $240 $10 $15 Project L -$1,000 $0 $250 $420 $761.94 The company's WACC is 10.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.