1. An investment offers a total return of 13.05 over the coming year. Janice Yellen...

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Finance

1. An investment offers a total return of 13.05 over the coming year. Janice Yellen thinks the total real return on this investment will be only 4.0%. What should Janice believe the inflation rate will be over the next year? (use the accurate equation)

Group of answer choices

8.64%

-7.95%

6.05%

9.94%

11.24%

2.

Christgau Corporation is expected to pay the following dividends over the next four years: $16, $13, $8, and $3. Afterward, the company pledges to maintain a constant 6% growth rate in dividends forever. If the required return on the stock is 13 percent, what should the current share price be?

Group of answer choices

$59.59

$56.60

$58.24

$66.37

$61.36

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