4. Julia's Jewel Company (JC) currently has a stock price of $35 per share. If JJC's cost of equity capital (same as discount rate for equity) is 11% and the current dividend yield (DIV1/PO) is 3.25%, the expected price per share of the company in one year (t = 1) is closest to? $38.10 $38.85 $36.14 $37.71 ! Incorrect It appears that you have randomly picked an answer. 5. Locked-In Real Estate (LIRE) is preparing for their Initial Public Equity Offering (IPO). With its holdings consisting of rent controlled apartments, and no plans for expanding, LIRE plans to payout all of its earnings as dividends. These dividends amount to $7.50 per share, forever. If the expected rate of return is 12%, what is the stock price of LIRE? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.) 51 ! Incorrect How to value an income stock. Simple, yet so powerful and useful