A firms most recent annual dividend was $1.50 per share. Over the next two years, the dividend is expected to grow at 12% per year, and then slow to a constant rate of 7% thereafter. If your required rate of return is 10% what is the value of the stock?

• $78.06
• $58.55
• $86.28
• $54.59
• None of the above

The Company has 100 million shares outstanding, paid an annual dividend of $0.25 per share to its common stockholders, and has a 40% marginal tax rate. The firm earned revenues of $800 million, had cash operating expenses of $300 million, paid interest expense of $15 million. What is the company's earnings per share?

• $3.00
• $2.91
• $1.10
• $1.40
• None of the above