1. MRNI Inc. has dividend payments with constant growth and is expected to pay dividend of $4.15 by the end of the year. If the current stock price is $65 and the required rate of return is 11%, what is the dividend growth rate and what is the stock price two years from now? Interpret (6 marks)

2. The preferred stock of PAY Inc. pays an annual dividend of $3.75 and sells for $47.80 a share. What is the rate of return on this security? (3 marks)