20. Etling Inc.'s dividend is expected to grow at 6% for the next two years and then at 3% forever. If the current dividend is $3 and the required return is 16%, what is the price of the stock?

A.$25.10

B.$25.82

C.$26.15

D.$27.58

E.$29.45

26. A stock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires 12 percent return on equity investments?

A.$38

B.$33.93

C.$34.50

D.$33.50