1.Acme common stock is expected to pay a dividend of $3 at the end of the year. Its annual growth rate is expected to be 3%, and the current share price is $40. What is the required rate of return on the stock? A. Between 10% and 12% B. Between 7% and 10% C. Between 14% and 17% D. Between 12% and 14%

2.ACME Co. has bonds outstanding with a price of $1,013. The bonds pay interest semiannually, mature in 11 years, and have a yield to maturity of 6.87%. What is the current yield?

		A.6.87%
		B. 6.95%
		C. 7.87%
		D. 6.45%
		E.7.36%