1. The euro is currently trading at 1.10 euros per dollar. The interest rate on the US Treasury Bill is 0.009 and the risk free interest rate in Europe is 0.009. What is the arbitrage free future exchange rate between the euro and the U.S. dollar for two years in the future in euros per dollar?

2. Boer Inc. expects to pay a dividend 1.2 in one year, it's current stock price is 50.0. and its dividend growth rate is 0.10. If Boer's investment bankers charge a flotation cost of 0.10 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity?