Part 1) Kelly Cosmetics is expected to pay a dividend of $2 at year-end. The firm is expected to grow at a perpetual rate of 5%. If its required rate of return is 8%, what should be its current stock price?

A) $70

B) $26.25

C) $72

D) 66.67%

Part 2 ) Coca Cola has outstanding bonds originally issued in 2020. The bonds have a par value of $1,000, annual coupon rate of 4.2%, and mature in 2050. If the bonds recently (in 2022) traded for $968.16, what is their yield to maturity?

A) 4.4%

B) 4.26%

C) 8.8%

D) 8.52%