71.) Troy Industries (TI) is a growth company that has never paid a dividend. The TI board of directors has decided to pay its first dividend two years from today. The first dividend will be $3.00 per share. Because of the growth expectations for the company, it is expected that the following three dividend payments will increase by 50% each year. Beyond that, the TI dividend is expected to grow at 7% annually. What is the value of TI if the required rate of return equals 13%?

a. $100.09.

b. $101.83.

c. $106.69.

d. $113.11.

72.) ACME has EPS of $20.00 per share. It has a retention ratio of 80% and its dividend is expected to grow at a rate of 10%. If the ACME shareholders require a return of 15%, then the stock price is closest to:

a. $80.00.

b. $88.00.

c. $108.00.

d. $110.00.