1.Last week, Railway Tours paid its annual dividend of $1.20 per share. The company has been reducing the dividends by 10 percent each year. What is the value of this stock at a discount rate of 13 percent?

$27.00

$36.00

$3.71

$4.70

$8.31

2.Alpha Industries is going to pay $.35, $.50, and $.80 a share over the next three years, respectively. After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth today at a discount rate of 13.45 percent?

$5.06

$6.20

$10.88

$7.61

$9.48