1. Judy's Boutique just paid an annual dividend of $2.29 on its common stock. The firm increases its dividend by 3.10 percent annually. What is the company's cost of equity if the current stock price is $38.20 per share?
2. Which of the following is an advantage of an interest rate collar over an interest rate cap? A. Lower cost B. Less risk C. Lower transaction costs D. Higher returns please explain.