LEP Tech is expected to pay its first dividend in exactly one year of $1.25 per share. The annual growth rate in dividends is expected to be 6% and LEP's shareholders require a return of 12%. The stock price is closest to:

a. $20.83.

b. $22.08.

c. $23.49.

d. $23.68.

BCOOL pays a current dividend of $0.75 per share. The annual growth rate in dividends is expected to be 5% and BCOOL's shareholders require a return of 12.5%. The stock price is closest to:

a. $9.50.

b. $10.00.

c. $10.50.

d. $11.00.