1. The stock of Valiant Industries, Inc. is expected to pay $0.80 per share every year indefinitely. If the stock is currently trading at $18.90 per share, and the company's equity cost of capital is 6.4%, what "price" per share should investors expected to pay 5 years into the future?

2. You purchased 1,000 shares of GHI Holdings common stock at a price of $22 per share. A year later, immediately after the company paid a divided of $1.50 per share, you liquidated your entire position (i.e., you sold all of your 1,000 shares) at a price of $26.

Based on this information, what is the capital gains rate (or capital gains yield) for this transaction?