1. Assume that the market yields 10% and the dividend yield of an average-risk stock is 5%, what would be the market’s consensus forecast for the rate of growth (appreciation) on that stock’s price?...

1. Assume that the market yields 10% and the dividend yield of an average-risk stock is 5%, what would be the market’s consensus forecast for the rate of growth (appreciation) on that stock’s price?

2. If a stock’s dividend growth rate is expected to be zero forever, what would be the stock price if the dividend was $1.00 and the firm had a required rate of return of 10%?