A share of common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 14.2%, then what is the stock price?

a. $7.42

b. $11.36

c. $11.98

d. $5.38

e. $12.98

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is r_s = 10.5%, and the expected constant growth rate is g = 8.2%. What is the stock's current price?

a. $32.61

b. $36.03

c. $7.14

d. $9.15

e. $35.28