QUESTION 21 Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $45. The stock will pay a dividend at year-end of $4.40. Assume that risk-free Treasury securities currently offer an interest rate of 2.0%. The historical average risk premium for the S&P 500 index is 7.8% per annum. What should be the price of the stock Sally should be willing to pay today? Round the answer to two decimal places and report it without the $ symbol. QUESTION 22 You purchase 100 shares of stock for $50 a share. The stock pays a $2 per share dividend at year-end. What is your real (inflation-adjusted) rate of return if the inflation rate is 7% and the year-end stock price is $56? Round the answer to two decimal places and report it as a percentage figure without the % symbol