1. Scite Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 2 years to maturity that is quoted at 109.1 percent of face value. The issue makes annual payments and has a coupon rate of 8.4 percent annually. What is the firm's pretax cost of debt? (Enter answer in percents.)
2. Last week, Onboard Co. has announced that the next two annual dividends will be in the amount of $2.47 and $3.77, respectively. After that, the dividends will increase by 3.01 percent annually. The required return on this stock is 9.94 percent. What is the current price per share? (Hint: draw this out on a timeline.)