1a. A tax-exempt municipal bond has a yield to maturity of 4.54%. An investor, who has a marginal tax rate of 17.00%, would prefer and an otherwise identical taxable corporate bond if it had a yield to maturity of more than ____%.

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

1b. A stock just paid a dividend of $2.60. The dividend is expected to grow at 21.23% for two years and then grow at 4.26% thereafter. The required return on the stock is 13.50%. What is the value of the stock?

Answer format: Currency: Round to: 2 decimal places.