1. ACME Co. stock pays a constant annual dividend of $2.38 a share and one share sells for $52.60. What is the expected rate of return? A.4.55% B.5.37% C.5.92% D.4.52% E.4.88%

2. The outstanding bonds of ACME provide a real rate of return of 3.6%. If the current rate of inflation is 2.68%, what is the actual nominal rate of return on these bonds?

		A. 7.38%
		B. 6.78%
		C. 7.78%
		D. 6.38%
		E. 7.53%