28. CBC stock is expected to sell for $22 two years from now. Supernormal growth of 5% is expected for the next two years. The current dividend is $1 and the required return is 15%. What constant growth rate is expected beginning in year 3?

A.6.5%

B.6.7%

C.8.1%

D.8.4%

E.9.5%

29. Bliley Plumbers pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.20 a share for three years commencing three years from today. After that time, the company plans on paying a constant $1 a share dividend indefinitely. How much are you willing to pay to buy a share of this stock if your required return is 15 percent?

A.$3.66

B.$3.94

C.$4.37

D.$4.71

E.$4.84

30. West Coast Wines recently paid a $4.40 annual dividend on its common stock. This dividend increases at an average rate of 4 percent per year. The stock is currently selling for $70.30 a share. What is the market rate of return?

A.6.11 percent

B.6.51 percent

C.6.77 percent

D.10.11 percent

E.10.51 percent