HQZ Inc., has just paid a dividend of $3.05 per share and has announced that it will increase the dividend by $3.84 per share for each of the next four years, and then never pay another dividend. If you require a return of 6.5 percent on the company's stock, how much will you pay for a share today? Answer to two decimals. The stock price of XYZ Co. is $22.6. Investors require an 6.77 percent rate of return on similar stocks. If the company plans to pay a dividend of $3.37 next year, what constant growth rate (in percent) is expected for the company's stock price? Answer to two decimals