Principle of Finance

A company's common stock currently sells for $32 per share. The dividend is projected to increase at a constant rate of 5% per year. The required rate of return on the common stock is 8%. What is the stock's expected price per share 2 years from today? $33.60 $35.28 $37.32 $38.11 A firm's stock has a 25% chance of producing a 8% return, a 50% chance of producing a 12% return, and a 25% chance of producing a 16% return. What is the firm's expected rate of return? 10% 12% 14% 16%