Pastaja Inc is a company that produces fireworks.Your friend Bill is looking to purchase the company stock, and wants to know what the current share price is.The company is planning to pay a $5 dividend in eight years from now and will increase the dividend 4% per year thereafter.The required rate of return is 11%.What is the current share price?

b) Knockem Corp common stock has a beta of 1.15.Government T-Bills are yielding 3.5% and the expected return on the market index is 11%.The company's cost of capital would be.