1.

A) Stock XYZ has a current dividend of $1.75 . The dividend is expected to grow forever at a rate of 2.50% . Based on the riskiness of XYZ, its discount rate is 5.00% . What is the stock price in period 2 ? $68.29 $70.00 $75.38 $73.54

B)

Stock XYZ has a current dividend of $3.00 . The dividend is expected to grow forever at a rate of 2.50% . Based on the riskiness of XYZ, its discount rate is 3.80% With this information, what is the dividend yield from today to period 1?

2.50%

1.43%

2.75%

1.30%