a) Dora Inc.'s stock has a required rate of return of 12%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D ₁?

	a.	$1.57
	b.	$2.48
	c.	$5.25
	d.	$7.92
	e.	$4.74

b) Ackert Company's last dividend was $3.00. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (r _s) is 12.0%. What is the best estimate of the current stock price?

	a.	$88.03
	b.	$78.37
	c.	$91.22
	d.	$85.79
	e.	$71.71