Regarding the basis for mutual funds

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1. Which one of the following regarding the basis for mutual funds is false ? The basis of mutual funds can be determined by using the:   

Double category method

Average basis

Specific share identification method

First in first out method

2. Blanton Consulting Inc. just paid a? $2.00 per share dividend. The firm also announced that it anticipates a longminus run growth in dividends of? 3% per year. Inflation is also expected to be? 3% per? year, and the firms required rate of return on common stock is? 11%. What is the current price per share of the? firm's stock?

A. ?$25.00

B. ?$14.29

C. ?$14.71

D. ?$25.75

Reference no: EM131908723

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