16)11. A company earns $2.00 per share in 2012 and pays dividends 70% (0.70) in 2012. If the firm has ROE 30%, what is the expected dividend growth rate.

a. 0.08

b. 0.09

c. 0.21

d. 2.09

17)18. Mohammed received a credit card with a credit limit of $2000. The car has an annual interest rate of 26% per annum. Payable monthly. Mohammed used the card and spent all the limit. I ignore statement for one year. What amount does Mohammed owe to the bank according to his 12 months statement.

a. 1.29933

b. 1,456.89

c. 2,465.98

d. 2,586.67

20) Bayyoud Corp. is currently paying dividend of $2.50. the company is expected to grow at 20% for 2 years and then the rate will grow at 3%. If the required rate of return is 12%. What is the value of the stock?

a. 34.89

b. 33.33

c. 38.41