7.The common stock of Wetmore Industries is valued at $10.08 a share. The company increases their dividend by 3.5 percent annually and expects their next dividend to be $1.24. What is the required rate of return on this stock?

A.15.80 percent

B.16.23 percent

C.16.35 percent

D.16.49 percent

E.16.53 percent

8.Fido's Foods just paid their annual dividend of $1.20 per share. They are projecting dividends of $1.30, $1.45, and $1.70 over the next three years, respectively. After that, the company expects to pay a constant dividend of $1.50 a share. What is the maximum amount you are willing to pay for one share of this stock if your required return is 12 percent?

A.$12.06

B.$12.42

C.$12.50

D.$16.67

E.$16.95