1. Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend of $0.44 per share two years from today (T=2) and you expect dividends to grow by 3.7%per year thereafter. If Wyatt Oil's cost of equity capital is12.9%,then the value of one share of Wyatt oil today is closest to:

A.$4.24

B.$0.44

C.$4.79

D.$3.76

E.$3.41

F.$3.02

2. You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of$5this year. Furthermore, you expect that they will pay out $1.25of these earnings to shareholders in the form of a dividend at the end of this year. You estimate that LBE's return on new investments is 15% and their equity cost of capital is 12%. Your expected growth rate for LBE's dividends will be closest to:

A.11.3%

B.6.8%

C.9%

D. 4.5%