a. A company has stock which costs $43.25 per share and pays a dividend of $2.70 per share this year. The company's cost of equity is 8%. What is the expected annual growth rate of the company's dividends?

a. 5.28%

b. 1.76%

c. 3.52%

d. 7.04%

B. A bond has a$5,000 face value, ten years to maturity, and 6% semiannual coupon payments. What would be the expected difference in this bond's price immediately before and immediately after the next coupon payment?

a. $300

b. $75

c. $450

d. $150