Industrial Light and Magic, Inc., is a young start-up company. dividends will be paid on the stock over the next 3 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $2 per share dividend in 4 years and will increase the dividend by 3.2 percent per year thereafter. If the required return on this stock is 18.9 percent, what is the current share price? (Do not round your intermediate calculations.)

Question 5 options:

	$7.35
	$7.58
	$7.81
	$6.82
	$6.37

Industrial Consolidated is expected to pay the following dividends over the next three years: $1, $2, and $3. Afterward, the company pledges to maintain a constant 3.2 percent growth rate in dividends forever. If the required return on the stock is 11.1 percent, what is the current share price? (Do not round your intermediate calculations.)

Question 6 options:

	$34.95
	$35.62
	$31.24
	$33.29
	$34.28