#1	The ABC Company just issued a dividend of $4.25 per share on its common stock.
	The company is expected to maintain a constant growth in its dividends indefinitely.
	The constant growth rate is 7.0%
	The current price of the stock is $66 per share.
	Based on the DDM, what is ABC's Cost of Equity (Ke)?
	Ke based on DDM =	13.89%
	Ke based on DDM =	12.98%
	Ke based on DDM =	7.00%
	Ke based on DDM =	15.25%
#2	The NBC Company has an issue of preferred stock.
	It has a par value of $100.
	It has a dividend payout ratio of 6%
	The current price of the stock is $95
	What is NBC's cost of preferred stock (Kpf)?
	Kpf =	5.74%
	Kpf =	4.56%
	Kpf =	6.32%
	Kpf =	5.87%