A stock has a current annual dividend of $6.00 per year and it is expected to grow by 3% (0.03) a year. It is expected that two years from now the stock will sell for $90.00 a share. If the interest rate is 5% (0.05), the dividend-discount model predicts the stock's current price should be:

a. $94.90

b. $93.29

c. $101.30

d. $94.30

A stock currently does not pay an annual dividend. An investor expects this policy to remain in force. She believes, however, the stock of this company will sell for $110.00 per share four years from now. If she has an interest (discount) rate of 7% (0.07), the dividend discount model predicts the current price of this stock should be:

a. you cannot apply the model to this example since it requires a dividend be offered.

b. $82.00

c. $83.92

d. $86.35

The price of a stock is currently $750 and the stock will pay a $43 dividend. The interest rate is 7.5%. Based on the dividend-discount model, what is the expected price of this stock for next year?

a. $651.17 b. $657.67 c. $691.17 d. $763.25

please show your work, thank you