1. Dividend Pricing Model - Anderson Motors, Inc. has just set the company dividend policy at $.50 per year. The company plans to be in business forever. What is the most you should be willing to pay if you want to have a 13% return? a. $10.00 b. $6.50 c. $5.00 d. $3.85 2. King Waterbeds has an annual cash dividend policy that raises the dividend each year by 4%. The most recent dividend (DIV) was .40 per share. What should the stock price be if you want to earn an 8% return? a. $10.50 b. $10.40 c. $10.60 d. $10.70