1. Toyota Corp.'s stock price has a variance of returns of 0.0305. Honda Corp.'s stock has a variance of returns of 0.0515. The covariance between Toyota and Honda is 0.0275. What is the correlation coefficient between Toyota and Honda?
2. Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 14 percent and the company just paid a dividend of $1.75, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)