Question: Help on both please!! 1. A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D 1 =

Help on both please!!

1. A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D₁ = $1.00), and it should continue to grow at a constant rate of 3% a year. If its required return is 13%, what is the stock's expected price 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 11.30%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

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