1. A stock has a price of 84.76 dollars and an expected annual return of 12.48 percent. The stock is expected to pay a constant dividend forever with the next annual dividend expected in 1 year. What is the present value of the annual dividend that is expected to be paid in 8 years from today?
2. What is the expected annual return for a stock that is priced at 67.96 dollars, is expected to pay a dividend of 2.71 dollars every quarter forever, and is expected to pay its next dividend in 3 months? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.