Q21/22

Womack Toy Company's stock is currently trading at $47 per share. The stock's dividend is projected to increase at a constant rate of 5.5 percent per year. The required rate of return on the stock, rs, is 7.3 percent. What is the expected price of the stock 9 years from today? O $80.10 O $78.10 ho O $76.10 O $82.10 O $84.10 McKenna Motors is expected to pay a $1 per-share dividend at the end of the year (D1 = $1). The stock sells for $22 per share and its required rate of return is 6.8 percent. The dividend is expected to grow at a constant rate, g, forever. What is the growth rate, g, for this stock? O 2.55% 0 2.05% O 1.85% 3 O 2.35% O 2.25%