Company A has just paid a dividend of $1 per share to its common shareholders. The company also announced that it would continue to pay this dividend dollar per share in the future. Given that the common shares are trading at $12.50 per share, what is the required rate of return to the common shareholder?

BCD Ltd is evaluating whether to invest in a project which costs $220,000. The project's annual cash inflow is $65,000 at the end of each year for the next 4 years. What is the payback for this project?