5. If you want to increase your purchasing power by 5%, what is the required nominal rate when the inflation rate is 3%?

A 3.0%

B 5.0%

C 8.0%

D 8.2%

E 15.0%

6. High Country Builders currently pays an annual dividend of $1.35 and plans on increasing that amount by 2.5 percent each year. Valley High Builders currently pays an annual dividend of $1.20and plans on increasing its dividend by 3 percent annually. Given this information, you know for certain that the stock of High Country Builders' has a lower _______ than the stock of Valley High Builders

A market price

B dividend yield

C capital gains yield

D total return

E The answer cannot be determined based on the information provided