Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 3 years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $0.55 per share. What is the current value of this stock if the required rate of return is 12.5 percent?

Group of answer choices

$8.48

$9.32

$10.56

$11.79

$7.63

Home Canning Products common stock sells for $18.00 a share and has a market rate of return of 14.2 percent. The company just paid an annual dividend of $0.65 per share. What is the dividend yield?

Group of answer choices

4.42%

4.84%

2.95%

3.98%

3.36%

The Denver company is expected to pay the first dividend of $0.50 at the end of year 2. The dividend should grow at a rate of 7 percent per year for years 3 to 5. The stock can be sold for $31 at the end of year 5. If the required rate of return is 12 percent, what is the current value of this stock?

Group of answer choices

$19.08

$18.56

$20.34

$21.48

$17.62