14. Aluminum Valley Financial Group is a financial services company that has been struggling this year. You believe that it will suspend its upcoming dividend, and will thus not pay a dividend to shareholders at the end of the year (i.e., one year from now). After next year (beginning in year two) you believe it will resume paying its dividend, and will be able to pay out a $5.00 dividend in perpetuity. If the required return for this stock is 11%, what should be the price of this stock? A. $36.89 B. $40.95 (C.) $45.45 D. $50.00 E. $56.00 15. The average earnings-to-price ratio (earnings per share divided by stock price) for a particular industry is 9.25% (.0925). You are looking to find a reasonable estimate for the stock price of a company in this industry which just announced earnings of $34 million, and which has 4 million shares of stock outstanding. Using a "comparable firms analysis" for this industry, what would be a good estimate for this company's stock price? A. $3.15 B. $8.50 C. $78.63 D. $91.89 (E.) $367.57