ABC common stock is expected to have extraordinary growth in earnings and dividends of 21% per year for 2 years, after which the growth rate will settle into a constant 7.30%. If the discount rate is 15% and the most recent dividend was $1.70, what should be the approximate current share price?

Multiple Choice

• $ 31.32

• $ 29.90

• $ 32.33

• $ 37.39

What is the expected constant-growth rate of dividends for a stock currently priced at $62, that just paid a dividend of $2.50 , and has a required return of 13%?

Multiple Choice

• 9.86 %

• 8.62 %

• 8.97 %

• 9.26 %