A stock with a beta of 0.8 just paid a dividend of $1.25 and is priced at $35. If the risk-free rate is 3% and the market risk premium is 6%, what is the expected growth rate for the stock?

6.4%

6.63%

4.08%

4.23%

Staples Inc. just paid a dividend of $2.20 that is expected to grow at 55% per year for the next two years, then grow at a constant rate of 6% per year. If the required return is 10%, what is the most you would be willing to pay for the stock as today?

$217.10

$123.23

$252.14

$176.74