21. PDQ, Inc. stock is selling for $80 today. You are expecting a dividend of $3 next year and you plan to sell the stock for $95 one year from now. Calculate the one-year return on PDQ stock.

a. 3.75%

b. 9.50%

c. 18.75%

d. 22.50%

22. Frazier Enterprises stock is selling for $45 today. You are expecting a dividend of $4 next year and a capital gains yield of 10%. Calculate the price of the stock 1-year from now.

a. $45.00

b. $49.50

c. $52.00

d. $55.50