1. IshiguroTranscontinentalpaida dividend of $4.15 last year and the company anticipates this will grow at 3.70% for the foreseeable future. The appropriate discount rate (expect return) for the stock is 12.40%, Ishiguro'sstock price is closest to:

A.$47.70.

B.$49.47.

C.$34.71.

2.Assume you are using the dividend growth model to value stocks. If you expect the inflation rate to increase, you should also expect:

A.market value of all stocks to decrease, all else equal.

B.stocks that do not pay dividends to decrease in price while dividend paying stocks maintain a constant price.

C.market value of all stocks to remain constant as the dividend growth will offset the increase in inflation.