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i am not sure how I should go about these questions A.G. Thomas & Sons just paid an annual dividend of $2.25. In conjunction with

i am not sure how I should go about these questions

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A.G. Thomas & Sons just paid an annual dividend of $2.25. In conjunction with the payment, the company announced that future dividends will be increasing by 3%. If you require an 11% rate of return, how much are you willing to pay today to purchase one share of Thomas' stock? Select one: O a. $20.45 O b. $21.07 O c. $28.13 O d. $28.97 Assume a firm increases the dividend by a constant rate g every period. At this moment, we are at year 0. We denote the stock price in year / as Pi, the dividend in year i as Dj. The required rate of return is R. Which of the following formula is most likely to be correct? Select one: O a. Pgg = D100/(r-g) O b. Dgg = Do(1 + 9)98 O C. Pgg = Dgg/(r-g) O d. Dgs = D1(1 + 9)98 For example, suppose the Eastcoast Energy Company has a policy of paying a $0.50 per-share dividend every year. If this policy is to be continued indefinitely, what is the value of a share of stock if the required return is 5 percent? Select one: O a. $2.00 O b. $8.33 c. $10.00 O d. $50.00

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