1. Jackson Inc. is expected to pay a $2.25 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock is 14%. What is the stocks current value per share?

Select one:

a. $37.50

b. $33.33

c. $39.00

d. $35.00

e. $25.00

2. If the Treasury yield curve were downward sloping (or otherwise said "inverted" or "non-normal"), the yield to maturity on a 10-year Treasury coupon bond would be higher than that on a 1-year T-bill.

Select one:

True

False