1. A company that currently does not pay dividends on its stock is expected to begin paying a constant annual dividend 8 years from now in the amount of $3.25 per share. The company is expected to maintain this dividend for 6 years and then cease paying dividends forever. Assume the required return on this stock is 12%. What will this stock sell for 7 years from now?

2. Assume a portfolio is invested 46% in Stock A, 29% in Stock B, and 25% in Stock C. If the expected returns on Stock A, Stock B, and Stock C are 11%, 23%, and 17%, respectively, what is the expected return for this portfolio?