1.creamy Custard common stock is currently selling for $79.00. It is expected to pay a dividend of $4.60 and dividends are expected to grow at a rate of 5% indefinitely. What is the required rate of return on Creamy Custard's stock?

10.82%

11.76%

11.11%

14.21%

FC stock is currently selling for $34.00. It paid end of the year dividend of $2.00 per share. Dividends are expected to grow at a constant rate of 4.5% indefinitely. Compute the expected rate of return on FFC stock.

10.65%

11.42%

12.43%

10.38%