Mickey Inc.'s stock has a required rate of return of 11.50%, and it sells for $29.00 per share. Mickey's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D₀?

	a.	$0.95
	b.	$1.38
	c.	$1.37
	d.	$1.22
	e.	$1.06

Power Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 22% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The companys last dividend, D₀, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?

	a.	$26.57
	b.	$32.69
	c.	$28.97
	d.	$23.39
	e.	$27.37