BACI Co$.\text{'}$s dividends are expected to grow at $28\%$ for the next three years and then, the growth rate of dividends is expected to stabilize at $5\%$ for the foreseeable future, when competitors catch up$.$ Its last dividend was $$\mathrm{.}75$ and investors require $10\%$ return from this stock. What is the third year's dividend estimate?

$$\mathrm{.}75$

$$\mathrm{.}85$

$$\mathrm{.}87$

$$1\mathrm{.}57$

$$\mathrm{.}1\mathrm{.}23$

Question $2$

$3\mathrm{.}7$ pts

Which of the following is closest to your estimate for the share price?

$$13\mathrm{.}00$

$$27\mathrm{.}00$

$$33\mathrm{.}00$

$$44\mathrm{.}00$

$$10\mathrm{.}00$