Mack Industries just paid a dividend of $5 per share (DO = $5). Analysts expect the company's dividend to grow 7 percent this year (D1 = $5.35) and 5 percent next year. After two years the dividend is expected to grow at a constant rate of 3 percent. The required rate of return on the company's stock is 16 percent. What should be the company's current stock price? O $49.86 O $41.86 $43.86 O $45.86 O $47.86

McKenna Motors is expected to pay a $2 per-share dividend at the end of the year (D1 = \$2). The stock sells for $28 per share and its required rate of return is 15 percent. The dividend is expected to grow at a constant rate, g, forever. What is the growth rate, g, for this stock? 8.46% 8.26% 8.66% 8.06% 7.86%