1. A company that does not currently pay dividends on its stock is expected to start paying a constant $5 dividend 5 years from today. The company is expected to maintain this constant dividend for 12 years and then stop paying dividends forever. If the required return on this stock is 11%, what will the share price be 4 years from today?

2. The expected returns on Stock X, Stock Y, and Stock Z are 18%, 12%, and 22%, respectively. Assume a portfolio is 20% invested in Stock X, 32% invested in Stock Y, and 48% invested in Stock Z. What is this portfolio's expected return