1.

.

2.

A stock expects to pay a dividend of $4.25 per share next year. Dividends are expected to grow at 20 percent per year for the following five years. Thereafter, the dividend growth rate is expected to be 4.6 percent per year forever. Investors require a rate of return of 11 percent on this stock. Calculate the expected price of one share of the stock nine years from today. O $170 $198 $181 $189 $176 A stock paid its annual dividend of $4.94 per share, last week. The dividend growth rate for the stock is expected to be 5.50 percent per year indefinitely. The appropriate discount rate for the stock is 13 percent. Determine the price of the stock today. $65.87 $69.49 $60.20 $61.28 $56.61