Question 162 pts

RWJ 8-9

KNX Corp commits to pay a dividend of $5.20 in year 1, $6.0 in year 2, and $7.5 in year 3, a share. After that, the annual dividend will be $11.00 per share indefinitely.

What is the value of KNX Corp today assuming investors require a return of 9.8 percent?

Group of answer choices

$114.7

$82.1

$66.70

$100.2

Question 172 pts

RWJ 8-1

Nesrin Power issued new shares of preferred stock. The issue will pay a $20 annual dividend in perpetuity beginning 10 years from now.

What is one share of this stock worth today if the investors require a return of 9 percent?

Group of answer choices

$102.32

$93.86

$222.22

$109.08