1.

You have a patent for a new combustion engine you believe will generate enormous demand. You seek funds to perfect, market, and manufacture your invention. Which factor affecting the cost of money is most relevant toPr your scenario?

inflation
		Time preferences for consumption
		Production opportunities
		risk

2.

1. tock E is currently priced at $43.44. It just paid a $1.98 dividend and has a cost of equity equal to 11%. What is the market-implied growth rate of the stock?

		7.26%
		4.78%
		7.44%
		6.16%