a. 6 Ma&Son Company will pay out a dividend of $2.60 one year from today (i.e., D = 2.60). Its required rate of return is 11%. If market expects that the dividend will grow at a constant rate of 4% per year forever, Ma&Son's stock should sell for $ today. 23.64 b. 28.89 32.50 d. 37.14 43.33 c. e. 7 Dr. Lee plans to add Sony, Inc. stock to his investment portfolio. The stock just paid a dividend of $1.50. He expects that the dividend will grow at 20% for the next two years and 4% forever after that. Assuming a discount rate of 13%, Dr. Lee knows that Sony, Inc stock is worth $ a. 22.83 b. 25.71 29.42 d. 33.16 37.50