22 457 1 B The following two questions (22 and 23) are based on the following information. Read the question carefully. Drawing a cash flow diagram helps a lot. Wireless Logic Corp (WLC) just paid a dividend of $1.25 per share. They have a new technology that is expected to go on the market this year, and their dividend is expected to grow at 15% per year for the next three years. After that, the dividend is not expected to increase for the foreseeable future. The next dividend will be paid out exactly in one year. Assume investors require an 11% rate of return on WLC's stock. ES Hint: Remember, the stock price equals the present value of future payments shareholders expect to receive. The dividend discount models hold Draw a timeline. le What is the price of WLC's shares today right after the $1.25 dividend is paid? $14.8 $17.2 $15.3 $16.7 2020217A Final E: 12158 14:32 25 questions, each worth 4 points. Only one correct answer per question. You have only one attempt, so be careful when submitting your exam. You will have 110 minutes. Please keep track of your time. Good luck! o 23 45 jati 11 What is the price of WLC's shares in three years, right after it has paid the dividend (ie. don't include the dividend in your calculation that you expect to receive in year three)? $15 $19.9 $17.3 $11.4 y Resources VID Schedule Notebook POF div QA 16