Thames Inc.'s most recent dividend was $2.40 per share. The dividend is expected to grow at 6% per year. The T-bill rate is 5% and the market risk premium is 10%. The company's beta is 1.3. What should be the expected price of the stock one year later?

Select one:

a. $64.21

b. $22.47

c. $25.20

d. $60.57

e. $68.06

Thames Inc.'s last dividend was $2 per share. The dividend is expected to grow at 4% per year. The stock currently sells for $30 per share. What is the estimated (predicted) rate of return of the stock today?

Select one:

a. 11.70%

b. 12.64%

c. 10.93%

d. 13.06%

e. 16.26%