1. Which of the following comes closest to the payback of a project that requires an initial investment of $1,000 and produces cash flow of $105 beginning at the end of one year and continuing forever? The project required rate of return is 10%.

A. 4 years

B. 6 years

C. 8 years

D. 10 years

2. ABC Corp. currently pays a dividend of $2.00 per share. The dividend is expected to grow at a constant rate of 6% into the future. If the market interest rate is 10%, then the current stock price is estimated to be ________.

	A.	$51.25
	B.	$52.66
	C.	$53.00
	D.	$55.00