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 return rate is 10%. The company's beta is 1.3. What should be the expected price of the stock two years later?

Select one:

a. $72.14

b. $51.97

c. $68.06

d. $64.24

e. $60.57

Thames Inc.'s last dividend was $4 per share. The dividend is expected to grow at 4% per year. The stock currently sells for $40 per share. What is the estimated (predicted) rate of return of the stock today?

Select one:

a. 12.0%

b. 11.7%

c. 11.2%

d. 14.4%

e. 13.8%