PLEASE ANSWER BOTH!!! I NEED IT AND WILL UPVOTE.

1. Media Music Inc is expected to pay an annual dividend next year of $6.25 a share, a dividend in Year 2 of $6.63, a dividend in Year 3 of $7.02, a dividend in Year 4 of $7.44, and a dividend in Year 5 of $7.89. Thereafter dividends are expected to grow at a constant rate of 2.35 percent annually. What is the price of Media Music stock given a required return of 12.5 percent.

   	A.	$55.83
   	B.	$68.90
   	C.	$57.47
   	D.	$72.55
   	E.	$64.55

2. Stock X has an expected return of 9.9% and a beta of 0.6. Stock Y has an expected return of 12.7% and a beta of 1.3. Stock Z has an expected return of 14.9% and a beta of 1.7. The market risk premium is 8% and the risk-free rate is 3%. Which of the following statements is true?

   .

   	A.	Stock X is underpriced, Stock Y is fairly priced, Stock Z is overpriced.
   	B.	Stock X is underpriced, Stock Y is overpriced, Stock Z is overpriced.
   	C.	Stock X is fairly priced, Stock Y is underpriced, Stock Z is overpriced.
   	D.	Stock X is fairly priced, Stock Y is overpriced, Stock Z is underpriced.
   	E.	Stock X is overpriced, Stock Y is underpriced, Stock Z is fairly priced.