QUESTION 11 Blue Inc. is expected to pay a $4.56 dividend at the end of this year. If you expect Blue's dividend to grow by 2.20% per year forever and Blue's equity cost of capital is 10%, then the value of a share of Blue stock is closest to: O a. $58.46 O b. $48.75 O c. $20.31 O d. $32.50 QUESTION 12 Avril Corp. has just paid a dividend of $2 per share this year. It is expected that this dividend will grow by 3% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 9.4%? (Hint: First calculate D1, dividend at t=1) O a. $39.20 O b. $32.19 O c. $31.53 d. $42.76