2. MC algo 8-40 Nonconstant Dividends

Mariota Corp. just paid a dividend of $4.35 per share on its stock. The dividend growth rate is expected to be 3.15 forever and investors require a return of 13.7 percent on this stock. What will the stock price be in 7 years?

Multiple Choice

• $46.48

• $51.23

• $21.51

• $52.84

• $40.69

5. MC algo 8-29 Valuing Stock

Braxton's Cleaning Company stock is selling for $31.75 per share based on a required return of 9.9 percent. What is the the next annual dividend if the growth rate in dividends is expected to be 3.9 percent indefinitely?

Multiple Choice

• $2.09

• $1.91

• $1.73

• $1.98

• $1.83

PLEASE HELP!!!!!!