1. A company's dividend grows at a constant rate of 4 percent p.a.. Last week it paid a dividend of $3.14. If the required rate of return is 16 percent p.a., what is the price of the share 2 years from now? (round to nearest cent) a.$29.43 b.$28.30 c. $21.87 d.$36.62 ABC 2. A company has just paid its first dividend of $3.82. Next year's dividend is forecast to grow by 8 percent, followed by another 8 per cent growth in year two. From year three onwards dividends are expected to grow by 3.6 percent per annum, indefinitely. Investors require a rate of return of 12 percent p.a. for investments of this type. The current price of the share is (round to nearest cent) a.$51.04 b.$47.49 C.$31.33 d.$31.13