1.A stock sells for $50. The next dividend will be $5 per share. If the rate of return earned on reinvested funds is a constant 12% and the company reinvests a constant 50% of earnings in the firm, what must be the discount rate? (Do not round your intermediate calculations. Enter your answer as a whole percent.)

2.Rework Table 7.4 for horizon years 1, 2, 3, and 10, assuming that investors expect the dividend and the stock price to increase at only 6% a year and that each investor requires the same 12% expected return. The company will pay a dividend of $1.50 at the end of the first year. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

horizon	PV dividends	PV price
1
2
3
10

Value per share?