21.Tim is considering the purchase of a common stock that will not pay any dividend for next 3 years. The first dividend will be $2 in the end of year 4.He expects this stock to have a constant growth rate of 8 percent since then. If he requires a 12 percent rate of return, how much is he willing to pay for this stock?

A)34.55

B) 35.59

C)37.42

D)39.28

23.Suppose Crane reported net profit of $10 million this year. It decides to distribute 6.5 million to its shareholders as dividends and uses the retained earnings to open new stores.The return on investment for the shareholders is expected to be 14%. What will be its internal growth rate?

A) 5.11%

B) 6.76%

C) 4.9%

D) 3.21%

20.Lily Co. is expected to pay a dividend of $5.25 on its common stock next year. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. If the required rate of return on this stock is 15.5%, compute the current value per share of Lily Co. stock.

A) $88.38 or $81.38

B) $75.00

C) $56.23

D) $43.90