Francis Inc.'s stock has a required rate of return of 14.90%, and it sells for $45.00 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1? a. $6.71 b. $3.78 c. $4.25 d. $2.70 e. $4.01

5-year Treasury bonds yield 4.3%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*? a. 2.80% b. 2.40% c. 2.00% d. 1.50% e. 3.83%