1.) A stock is expected to pay $ 0.85 per share every year indefinitely. If the current price of the stock is $ 18.80, and the equity cost of capital for the company that released the shares is 6.7%, what price would an investor be expected to pay per share five years into the future?

3.) A stock is bought for $ 23.50 and sold for $ 26.00 one year later, immediately after it has paid a dividend of $1.50. What is the capital gain rate for this transaction?