Answer the two questions below please

6. Elf Industries just built a better orc trap and everyone agrees they should be able to grow dividends at 3% per year for the foreseeable future. Ifthe current price of the company stock is $40per share and the company just paid a dividend of $2 per share, what must be the required rate of return expectation in the marketplace? a. 5.15% b. 8.15% c. 8.0% d. 5.0% Answer: 7. The board of directors for Elf Inc. has just announced it will pay a dividend of $3.25 next year. It is expected that the stock will grow at a rate of 18 percent. If investors require a rate of return of 24 percent, what should be the price of the stock? a. $13.54 b. $15.98 c. $63.92 d. $54.17