Question 1 (1 point) Saved A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 6.50% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $2.80 per share. What is this stock worth if you require a 10.50% rate of return? $10.96 $11.26 $11.57 $11.87 $12.17 Question 2 (1 point) A stock was trading at $22.90 at the end of year 1. It was trading at the end of year 2 at $23.23 immediately after giving a dividend of $0.37. At the end of year 3. it was trading at $22.59 immediately after giving a dividend of $0.39. Finally, it was trading at $24.41 at the end of year 4 without giving out any dividend. What was the geometric average annual return of this stock for the three years between years 1 and 4? 3.03% 3.11% 3.20% 3.28% 3.36%