Hatcher Corporation just paid a dividend of $3.00 a share (that is, D ₀ = $3.00). The dividend is expected to grow 11 percent a year for the next 4 years and then at 5 percent a year thereafter. What is D ₅, the expected dividend per share for Year 5?

a. $5.06

b.$4.78

c.$3.83

d.$4.47

e.$5.81

Richardson Brothers is expected to pay a $1.25 per share dividend at the end of the year (that is, D ₁ = $1.25). The dividend is expected to grow at a constant rate of 7 percent a year. The required rate of return on the stock, r _s, is 12 percent. What is the stocks value per share?

a.$25.00

b.$26.75

c.$10.42

d.$23.36

e.$11.15