1. Crabby Hippo, Inc., has an issue of preferred stock outstanding that pays a $5.22 dividend every year, in perpetuity. If this issue currently sells for $73.7 per share, what is the required return? (Do not round intermediate calculations and round your answer to percent with two decimals, i.e. 32.18)

2. The stock price of Baskett Co. is $70.33. Investors require a return of 11.5 percent on similar stocks. If the company plans to pay a dividend of $5.54 next year, what growth rate is expected for the company's stock price? (Do not round intermediate calculations and round your answer to two decimal points, i.e. 32.16)