1) The required return for a stock is based on the capital gain yield:

	A)	minus the dividend yield
	B)	plus the dividend yield
	C)	divided by the dividend yield
	D)	multiplied by (1 + dividend yield)

7) If the dividend in year 2 is $1.20 and the growth rate is 5%, then the dividend in Year 7 is equal to:

	A)	$1.20 X (1.05)3.
	B)	$1.20 X (1.05)4.
	C)	$1.20 X (1.05)5.
	D)	$1.20 X (1.05)6.