Question $10$

The decided to buy stocks the pay first year dividend of $$1\mathrm{.}20$ and second year dividend of $$1\mathrm{.}5.$ at the end year $2$ you are expecting to sell with price of $$20.$ If the required rate of return for the stock is $10\%,$ the value of the stock is:

a$.18\mathrm{.}859$

b$.20\mathrm{.}00$

c$.15\mathrm{.}859$

d$.$ None of the above answer is correct

Question $11$

A company recently recorded earning per share of $$5.$ The company has the payout policy of $40\%.$

If the growth rate for the dividend payment is $10\%,$ the dividend per share for the next year is estimated to be

a$.2\mathrm{.}2$

b$.3\mathrm{.}2$

c$.3$

d$.$ none of the above