M 1. The common stock of Auto Deliveries sells for $28.16 a share. The stock is expected to pay $1.35 per share nest year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 3 percent annualy and expects to continue doing so. What is the market rate of return on this stock? A. 7.42 percent B. 7.79 percent C. 19.67 percent D. 20.14 percent E 20.86 percent M 2. Rey's Welding Supplies common stock sells for $38 a share and pays an annual dividend that increases by 3 percent annually The market rate of return on this stock is s20 percent. What is the amount of the last dividend paid? A. S1.80 B. $1.86 C. $1.92 D $1.98 E $2.10