Answer both questions correctly. Show all work.

What constant growth rate in dividends is expected for a stock valued at $32.00 if next year's dividend is forecast at $2.00 and the appropriate discount rate is 12.5%? ` A. 5.00% B. 6.25% C. 6.75% D. 15.38%

Gentleman Gym just paid its annual dividend of $3 per share, and it is widely expected that the dividend will increase by 5 percent per year indefinitely. If the discount rate is 15%, what should be fair price of its stock?A.$15

B.$20

C.$31.5

D.$48.3