1. Which of the following is not a capital when calculating the weighted average cost of capital ( WACC ) for use in capital budgeting?
a. Common stock
b. Accounts payable.
c. Long-term debt.
d. Retained earnings.
2. HaryLary investments just paid a dividend of $1.50 a share. The dividend is expected to grow 10% a year for next 3 years and then 5% a year thereafter. what is the expected dividend per share at the end of third year?
a. $2.00
b. $1.65
c. $1.82
d. $2.10
e. $1.50
please, show me your solution.