39-Long-term government bonds are expected to yield 4.5% and Treasury bills are expected to yield 3.4%. The market has an expected rate of return of 9.8%. The inflation rate is 3.1%. What is the market risk premium?

Select one:

a. 6.4%

b. 2.2%

c. 3.3%

d. 6.7%

e. 5.3%

40-Dornel Inc. made two announcements concerning their common stock today. First, the company announced the next annual dividend will be $1.48 a share. Secondly, all dividends after that will increase by 2.5% annually. What is the maximum amount you should pay to purchase a share of this stock if your goal is to earn a 12% rate of return?

Select one:

a. $15.58

b. $15.97

c. $12.33

d. $13.27

e. $12.64

-Just the correct Letter for each question, without any any any explanation at all, please! And I'll put a Like. But don't explain the answers -Just answer the questions if you're 100% sure about the correct answers, please!