Question $12$

$14$ pts

Assume a corporation has just paid a dividend of $$4\mathrm{.}75$ per share. The dividend is expected to grow at a rate of $4\mathrm{.}3\%$ per year forever, and the discount rate is $8\mathrm{.}9\%.$

What is the dividend yield of this stock?

Enter your answer as a percentage, rounded to $1$ decimal, and without the percentage sign. So$,$ if your answer is $0\mathrm{.}05678,$ just enter $5\mathrm{.}7.$

Question $13$

$14$ pts

A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $$41,$ the most recent dividend was $$1$ per share, and the dividend is expected to grow at a rate of $6\%$ forever. Flotation costs for this issue are expected to be $11\%.$ What is the required rate of return $($or financing cost$)$ in this new issue?

Note: when flotation costs are given as a percentage instead of in dollar terms, the denominator in the formula changes from $($P$-$F$)$ to $P^{**}(1-F).$

Enter your answer as a percentage, rounded to two decimals. So$,$ if your answer is $0\mathrm{.}123456,$ enter $12\mathrm{.}34$